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Cherokee County, TX
I am trying to find out what the going rate is for the per acre bonus payment for an oil and gas lease in Cherokee County, TX, the length of lease, and the royalty percentage. Anybody have any knowledge on this. I believe it is in the Cotton Valley area.
Keywords: Cherokee County TX, bonus, lease rates, royalty rates
Replies to This Discussion
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Permalink Reply by Steven Miller on -
I am from Henderson, Tx and I am doing the same thing. Go to the City of Shreveport webpage and type in Haynesville Shale. There is a wealth of info there. Bonus payments averaged $400 per acre several years ago. Recently, some have received $13,400 per acre. Look at factors like nearby pipelines, nearby producing oil wells, what others have received, proximity to the Haynesville Shale, proximity to sweet spots of which Nacogdoches County has one, and what nearby wells have produced by day .5 ot 2 million cubic feet per day is the average range. The royalty rate should by 25% after production. Lease for 2-5 years, 3 is average.
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Permalink Reply by Erica Walker on
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Julia did ever find out the going rate for Cherokee?? I just got an offer in the mail today for $200 an acre. I don't feel thats any kind of decent offer!!
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Permalink Reply by Julia Watters on
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No, I never found out. I have a lot of minerals in North Dakota though and I never take an offer through the mail. They are usually very low. You could call them and negotiate the price, but a mail offer is usually way too low.
Erica Walker said:Julia did ever find out the going rate for Cherokee?? I just got an offer in the mail today for $200 an acre. I don't feel thats any kind of decent offer!!
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Permalink Reply by Jack Blanks on
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I have been leasing my minerals and helping friends lease in Cherokee County for years. The play is probably Travis Peak. Cherokee activity has died down tremendously. A few years ago when Chesapeake was leasing there, the bonuses got as high as $400/ acre, that's also when natural gas prices were about 3x what they are today. Since then, interest has shifted outside of Cherokee to the Haynesville Shale Play and Eagle Ford Shale Play. Lately, I've seen offers from $150-$250/acre and 3/16ths-1/5th royalty. There are a lot of factors that go into your bonus and royalty. Most of it depends on how large your tract is and how important it is to the leasing company. If you have a large amount of acreage, hundreds of acres, you have more negotiating power. Hope that helps.
Erica Walker said:Julia did ever find out the going rate for Cherokee?? I just got an offer in the mail today for $200 an acre. I don't feel thats any kind of decent offer!!
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Permalink Reply by Julia Watters on
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We have 143 total acres among five people that we would like to lease if you know of anyone interested.
Jack Blanks said:I have been leasing my minerals and helping friends lease in Cherokee County for years. The play is probably Travis Peak. Cherokee activity has died down tremendously. A few years ago when Chesapeake was leasing there, the bonuses got as high as $400/ acre, that's also when natural gas prices were about 3x what they are today. Since then, interest has shifted outside of Cherokee to the Haynesville Shale Play and Eagle Ford Shale Play. Lately, I've seen offers from $150-$250/acre and 3/16ths-1/5th royalty. There are a lot of factors that go into your bonus and royalty. Most of it depends on how large your tract is and how important it is to the leasing company. If you have a large amount of acreage, hundreds of acres, you have more negotiating power. Hope that helps.
Erica Walker said:Julia did ever find out the going rate for Cherokee?? I just got an offer in the mail today for $200 an acre. I don't feel thats any kind of decent offer!!
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Permalink Reply by Jack Blanks on
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Julia,
Tell me what survey your land is in I will ask around if there is any ineterest.
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Permalink Reply by Carol Ezell on
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My mom received an offer of $200 per acre for 115 acres in the J. Johnson Survey in Cherokee County Texas. Not sure if it inlcudes a % if they start producing or not. Like Erica, the $200/acre sounds really low to me, but I'm not familiar with the activity there since we live in the D/FW area. Anyone know if that is a reasonable offer? Anyone heard of Balyeat Oil & Gas, LLC? Can't find anything about them in a google search, and that concerns me too.
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Permalink Reply by Julia Watters on
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I haven't found out anything about it.
Carol Ezell said:My mom received an offer of $200 per acre for 115 acres in the J. Johnson Survey in Cherokee County Texas. Not sure if it inlcudes a % if they start producing or not. Like Erica, the $200/acre sounds really low to me, but I'm not familiar with the activity there since we live in the D/FW area. Anyone know if that is a reasonable offer? Anyone heard of Balyeat Oil & Gas, LLC? Can't find anything about them in a google search, and that concerns me too.
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Permalink Reply by Jack Blanks on
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I was talking to an attorney the other day who represented a mineral owner in Cherokee County and he said they signed for $175/acre bonus and a 3/16th royalty. I thought he said they had leased with "Ballyhoo" LOL, but maybe it was Balyeat. Tell your mom that the $200/acre sounds good, but make sure her royalty is not less than 3/16th.
Carol Ezell said:My mom received an offer of $200 per acre for 115 acres in the J. Johnson Survey in Cherokee County Texas. Not sure if it inlcudes a % if they start producing or not. Like Erica, the $200/acre sounds really low to me, but I'm not familiar with the activity there since we live in the D/FW area. Anyone know if that is a reasonable offer? Anyone heard of Balyeat Oil & Gas, LLC? Can't find anything about them in a google search, and that concerns me too.
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Permalink Reply by Erica Walker on
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Carol if your lease is like mine its $200 per acre and 1/5th. if you look on the actual bank draft a guys name Vince is on it. he is the one that owns this company. they lease for other companies. he said he can't give the companies name but it is a big oil company that is ready to drill now if we sign. my family and i still don't know what to do. you land must be close to ours. erica
Carol Ezell said:My mom received an offer of $200 per acre for 115 acres in the J. Johnson Survey in Cherokee County Texas. Not sure if it inlcudes a % if they start producing or not. Like Erica, the $200/acre sounds really low to me, but I'm not familiar with the activity there since we live in the D/FW area. Anyone know if that is a reasonable offer? Anyone heard of Balyeat Oil & Gas, LLC? Can't find anything about them in a google search, and that concerns me too.
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Permalink Reply by Jack Blanks on
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Erica, you said on the bank draft is the name Vince. Does it have a last name? If so let me know what it is and I'll see what I can find out for the both of you.
Erica Walker said:Carol if your lease is like mine its $200 per acre and 1/5th. if you look on the actual bank draft a guys name Vince is on it. he is the one that owns this company. they lease for other companies. he said he can't give the companies name but it is a big oil company that is ready to drill now if we sign. my family and i still don't know what to do. you land must be close to ours. erica
Carol Ezell said:My mom received an offer of $200 per acre for 115 acres in the J. Johnson Survey in Cherokee County Texas. Not sure if it inlcudes a % if they start producing or not. Like Erica, the $200/acre sounds really low to me, but I'm not familiar with the activity there since we live in the D/FW area. Anyone know if that is a reasonable offer? Anyone heard of Balyeat Oil & Gas, LLC? Can't find anything about them in a google search, and that concerns me too.
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Permalink Reply by Erica Walker on
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Jack his name is Vince Brigham
Jack Blanks said:Erica, you said on the bank draft is the name Vince. Does it have a last name? If so let me know what it is and I'll see what I can find out for the both of you.
Erica Walker said:Carol if your lease is like mine its $200 per acre and 1/5th. if you look on the actual bank draft a guys name Vince is on it. he is the one that owns this company. they lease for other companies. he said he can't give the companies name but it is a big oil company that is ready to drill now if we sign. my family and i still don't know what to do. you land must be close to ours. erica
Carol Ezell said:My mom received an offer of $200 per acre for 115 acres in the J. Johnson Survey in Cherokee County Texas. Not sure if it inlcudes a % if they start producing or not. Like Erica, the $200/acre sounds really low to me, but I'm not familiar with the activity there since we live in the D/FW area. Anyone know if that is a reasonable offer? Anyone heard of Balyeat Oil & Gas, LLC? Can't find anything about them in a google search, and that concerns me too.
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