Mineral Rights Forum

America’s conversation place for mineral owners

We  need information cocerning the fair market value of oil and gas lease in fayette county tx.  Many  people in this area are quick to sign their land for $200.00 per acre for 3 years with the leaser having the option to continue the lease for another $200.00 for the next 2 years.  We're asking is this a fair market value and is the length of time (5 yrs) is too long to tie up the  land.  A .187 royality is also being offered should there be any drilling.  We were told by our family lawyer to hold off as the activity in Fayette county will pick up alot during the next 5 years. We are located in Schulenburg,Tx.

Views: 737328

Reply to This

Replies to This Discussion

I'm sure someone that has recently signed a lease with one of these companies will give you some feedback; but, Geo Southern has been working this specific area for well over a year now and have signed literally hundred's if not thousands of leases to this point.  A few months ago, some other companies tended to get interested and now the activity has gotten more interesting.  Since Geo Southern seemed to be he only one interested a year ago, they have, to a large part, leased up most of the area between Schulenburg, North and East toward LaGrange, mainly East along Hwy 77.  They are now coming back and leasing the West side as well.  A few months ago, a few other companies seemed to move into the area and seem to be concentrating more from Schulenburg South toward Halletsville.  If you are interested in really understanding the Geo Southern leasing effort and what is involved, I suggest that you contact the office of attorney Mike Steinhauser in Flatonia at 361-865-2540.  I have had conversations with a number of people that have been working with Mr. Steinhauser on a finalized lease.

The initial Geo Southern leasing offer back in October of 2015 was at $300/$300 for a 3 year primary and 2 year option and 20% royalty.  Eventually they migrated upward to $500 and 20% and now I am pretty sure their offers are up to around $600/$600 for a 3/2 and 22.5% royalty.  Obviously there is much more to a lease than these two initial talking points.  That is the reason I suggest talking to one of the local attorney's.

Good Luck!

Bigfoot

Hey it's Don Purswell. I lost your contact info due to a computer issue. If you still have mine, email me or call me, I would like to talk.

Don:

I still had your e-mail from 4-5 years ago and if it is still active, you should have a message by now.  If I don't hear from you within the next couple of days, I will send a message through the offline capabilities of this forum.

I no longer have your phone number either since I lost my phone a couple of years ago.  Just so you know, my lease along with all the other contiguous acres around me (about 4000 acres) start dying in July and I haven't heard anything from our Land and Minerals guys.  In addition to my group, there is probably another 4000 acres joining us that will be available in May or June.  One thing for sure, the crude oil market isn't cooperating either.

BlackBrush from San Antonio is leasing and if your land is in their area of interest they would be a good company. They made some big wells in the trend and looking for more acreage. If you're interested contact me and I'll point you to the right person. Richard 214.914.1365

Kirch:

Thanks for the information; but, we will just wait and see how things go over the next 3-4 months.  Our group of acres are a long way from the Hwy 77, Schulenburg, Halletsville, LaGrange and Fayetteville push that has been going on for the last year or so.  We are located NNW of Flatonia about 9-10 miles and are hoping the original guys will pick up our leases as is, since we have an excellent lease that took many hours of hard work to hammer out and we don't want to loose that.  

Thanks

No problem Bigfoot. Feel free to holler at me if you wish and I'll give you what updates I receive on the play. Good luck to everyone. 

Check out the latest Rig Count!  Interesting numbers considering oil and especially gas prices.  Evidently lots of debt to pay off or someone has broken the code to making money in a low price environment.

http://shaleforum.com/shaleforum/group_discuss/64087/us-rig-count-u...

I received a letter yesterday from a company in San Antonio wanting to buy my mineral rights on a lease I signed last fall.  Of course, I don't plan on selling, I was just wondering if anyone else had received a letter like this, and if so, where is your lease located.  My lease is in north east Fayette county.  Thanks.

Joe: I have received two offer letters this past week on a lease on the Gulf Coast. They are typically
pennies on the dollar and go in the waste basket. What it tells me is that there is renewed interest in the areas these outfits are interested in. For the mineral/royalty owners there will be an opportunity
to attend the NARO Convention held in Austin in July this year. It will provide comprehensive educational workshops/seminars on mineral leasing, royalty owner issues and has been well worth the cost to gain very valuable information for current and future leasing activity and minerals management.

Thanks Mike, I will definitely make plans to attend the NARO convention.

Joe: Here is a link to NARO TX Convention Registration Site. It will be held at the Omni Barton Springs Resort in S Austin July 10-12, 2017. As a current member I have attended several of these Conventions and there is always new information that is helpful to the mineral owners. I especially like the Q&A sessions that may be able to answer specific problems one may have. 

 http://www.naro-us.org/event-2459551?CalendarViewType=0&Selecte...

RSS


© 2017   Created by Kenny DuBose.   Powered by

Badges  |  Report an Issue  |  Terms of Service