Replies to This Discussion

Permalink Reply by Carter on May 12, 2009 at 13:29

I've seen prices hold around that $400/$500 + 1/5th royalty. On the ground as of late. This information is via Ellora and based on actual offers I have seen within the past week. (Patroon area) I do not know what kind of bids are being offered around Shelbyville via St. Mary's or XTO. To my knowledge St. Mary's never exceeded about $300/ac under regular circumstances even during last summer.

If you have acreage in Huxley that runs toward the Ashton Hill or Sardis area, you might find a little better bid because of the CHK activity up that way.

I am advising family/friends to accept 3yrs term ONLY and $500 + 1/5 royalty with vertical AND horizontal Pugh Clauses as fair value right now if they choose to lease right now in this area (and there are no special circumstances to consider). My opinion of this could change tomorrow based on economic events or on announcements of positive news regarding some of the CHK wells in the Eastern 1/2 of Shelby. All of that being said, I believe that the above terms represent present fair market value in the Shelbyville/Huxley area, and I believe it is unrealistic to expect terms to improve exponentially in the next 6-12 months given the fundamentals in natural gas and the overall economy right now. Even if you believe that your lease will have a future value of say, $1000/ac in 12 months, you have to factor in the premium of money in your hand right now vs. 12 months out. A lease has a time decay factor in terms of its value, and if you are a mineral owner, the decay works in your favor. All things to consider.

Good luck in whatever decision you choose. And don't forget to get both a horizontal and vertical Pugh Clause!

Permalink Reply by shelby on May 13, 2009 at 1:47

Carter,
Thanks for the insight and information regarding lease activity in Shelby County. It sounds pretty consistent with what I have been hearing following this site, with the exception of St. Marys and CHK which have made some stronger offers in the past year in areas they are positioned. I hope that some good news comes on line with IP reports for some of the wells that should be reporting soon; that might at least raise the mark to what good leases are fetching in Desoto Parish, which ain't far from Texas plays.
Best of luck in all your efforts,
Shelby

Permalink Reply by shelbyco on May 21, 2009 at 17:26

I saw that Family Tree Corp. has recently recorded several Shelby County Leases. Does anyone know who is leasing for them?

Permalink Reply by ledlights on May 24, 2009 at 13:00

Casey Harless - ceharless@familytreecorp.com

Permalink Reply by shelbyco on May 25, 2009 at 14:13

Thanks.

Permalink Reply by cicero on June 13, 2009 at 5:38

Carter,

Do you know of any recent leasing in the Eastern 1/2 of Shelby? I am aware of a current CHK offer of $500/3 yr lease and $750/5 yr lease with a 1/4 royalty. Thanks

Permalink Reply by adubu on June 13, 2009 at 8:51

cicero ---where & what survey? thanks for reply

Permalink Reply by Marsha Flowers on June 28, 2009 at 11:25

I am interested in knowing leasing offers in Shelby Co. Not sure of the geological district my property is in. But it lies along St. Highway 7 about 4 miles west of Center.

It is difficult to know if I am being offered a fair price. How does one tell?

Permalink Reply by adubu on June 28, 2009 at 14:51

what you want are good lease terms ---they are more inportant than bonus because you have to live with terms a long time if you have production. The following are most inportant 25% royalty, royalty free gas or oil (ie you pay no compression, transport, or anything to prepare gas for market or any type WI expences) Freestone rider pooling clause, vertical and horizonital depth pugh clauses. These to me most important then good bonus is nice. Then always good ideal to have good oil & gas attorney read over the lease before it is signed. A couple hours of attorney fees is worth every dollars I know from past lease about 10 years ago that look and sounded ok at time but turn out differently and was costly.

Permalink Reply by Anita on June 28, 2009 at 21:56

Does anyone know of any drilling in Shelby County ,Center Texas in the Ashabranner Henery Block 0 track? Would love to know what the leasing rates are.Thanks!

Permalink Reply by adubu on June 29, 2009 at 1:03

CHK drilled the Harvey # 1 H in the Henry Ashbranner Survey but no news on completion if fac done yet. It was drilled vertically to ~11,200' into shale with H 7000' leg. Any one know if completed or not????????

Permalink Reply by MARG on July 29, 2009 at 6:24

Hi Marsha!

I would put forth effort to find out about the Harvey l well as it is at James Community Area. You might call the TRRC in a few weeks to find out. That is District 6 which is the TRRC in East TX. Kilgore, I believe. If that is a good well, you should be able to get a very good lease deal.

• ‹ Previous
• 1
• 2
• Next ›
• Page