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Eagle Ford Shale - Oil & Gas Discussion

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Eagle Ford Shale - Oil & Gas Discussion

Oil & gas discussion group for those interested in Eagle Ford Shale. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Website: http://www.eaglefordshale.com
Location: South Texas
Members: 366
Latest Activity: 14 hours ago

Discussion Forum

Lavaca County

Started by Mary Ann Whisenhunt. Last reply by Dillon yesterday. 2 Replies

Has anyone seen drilling activity in the mid Northwestern part of Lavaca County?

Royalty Payments getting lower and lower and lower....

Started by Robyn Barziza Chargo. Last reply by James M. Schroeder on Thursday. 3 Replies

Hi all..My 2 siblings and I inhereted about 15 acres of mineral rights and lease to EOG.  We were soooo excited...in the beginning....since we've been getting payments (about 6-7 months) they have…Continue

Value of Land in La Salle County

Started by Geri Seymour. Last reply by MICHAEL L HILLIARD on Thursday. 9 Replies

We have been approached by EOG to purchase our 10 acres for the land only.  The mineral rights would remain with us.  Does anyone know what the going rate is for acreage in La Salle County and if…Continue

Eagle Ford Shale Burleson, Milam Co. line

Started by N Carpenter. Last reply by Rock Man Apr 14. 1 Reply

I have substantial mineral interests in about a section and a half of land straddling these county lines. We have a few active leases and 1 "active" well that is not really producing and is being…Continue

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Comment by Jane T. Wilhelm on Friday

I have a question for anyone who understands how horizontal wells and leases work.  I own land near Pawelekville and because our family discovered some discrepancies in the exact ownership inheritance and our lease/royalties have been held in suspension for several years--oh the headache of legal negotiations---would this matter affect the decision of how the oil company we are leased to would choose to map out the various units?  i.e., might they choose to avoid our property until the matters are resolved?

Thank you very much for your help.

Comment by William Douglas Archer on April 14, 2015 at 7:29pm
A friend of mine is a partial owner in one of those companies that is always making offers for royalty interests. He told me that they price to guaranty a 20% profit in the event they were to immediately flip the minerals.

The thing i would caution all is this. The offers are generally for all minerals in the county and that could include minerals not in production. They are paying for the minerals in production, and getting others for free.

I would be very reluctant to part with minerals.
Comment by James M. Schroeder on April 14, 2015 at 7:14pm

thanks to all of you for your responses. They have  been most helpful.

Comment by Rock Man on April 14, 2015 at 4:31pm

These royalty purchasing groups are great at watching what operators are doing and probably have contacts on the inside of many groups. They also play for the "long haul".

Comment by Rock Man on April 14, 2015 at 3:48pm

Depecning on the location of the first well, I would guess that at least one additional Eagle Ford well can put put on this tract.

Of course. if this is any area of Austin Chalk and/or Upper EF potential, 1-2 more laterals for each of these targets can be fit in.

And then there is the Buda below the EF - always a possibility.

And not even talking the deep Pearsall (which may be economic someday) as well as shallow Taylor / Olmos et al sands plus the Pecan Gap / Anacacho interval.

Prospectivity depends on the area.

Re-Frac'ing the present well also an option.

And the depletion you are seeing is definitely the norm for EF wells

Comment by S.Haas on April 14, 2015 at 3:46pm

My mom's wells are in Karnes County - last year for the heck of it - we submitted information to a company to see what they would offer on 3 wells... the amount was $700,000+  and they said we had to accept it in 48 hours - of course - we did not.... the next week I was looking on the RRC - saw that Marathon was going to drill 5 more wells on the locations.  Sometimes I think those companies know more than we know.   If I were you - I would not sell. 

Comment by David James on April 14, 2015 at 3:46pm

James, if your acreage has been pooled with significantly more surrounding acreage, there could be potential for many additional wells to be drilled that you would receive royalties on. Most purchase offers are made with the knowledge/speculation that additional development will soon occur, as opposed to fluctuations in the commodity prices. Feel free to email me your legal description and I can take a look at the property and see if there are any clues as to what may happen in the future. david@hilltoproyalties.com

Comment by James M. Schroeder on April 14, 2015 at 3:39pm

I have an interest in an existing well in the Eagle Ford that is "playing out."  In two months it will have been in production for two years. The production is now at 20% of what it started out at. My understanding is that "irregular" wells in shale plays will deplete by as much as 87% over a two year period. 

I have several other royalty interests in properties in the Eagle Ford, and like everyone else, I get regular offers to buy them from "royalty companies." All of these offers have been laughable low ball offers, which I have put in file 13 with one exception, and that was an offer I got a few days ago for the mineral rights on the property that the aforementioned well is on. The offer was for 88 times  the current monthly royalty payment. The property in question is a 350 acre plot, and it has two producing wells on it; the one mentioned above, which is an oil well, and a gas well. Of course, the oil well constitutes 90% of the royalty payment.

The only reason I can think of that anyone would offer that much for a property with a producing well on it that is already 80% depleted, is they are counting on the ppb to spike back up, and betting that more oil wells are going to be drilled on the plot.  The plot is long and narrow, app. 7000' in length, and, on average, app. 2000' wide. The total length of the horizontal bore hole of the oil well is 6200' and spans all but a few hundred feet of the length of the property.  My question is this: How many, if any, more wells can conceivably be drilled on a plot of this size?

Comment by Wade Caldwell on October 5, 2014 at 12:45pm
Linda,
Post this in the Brazos County group.
Comment by Linda Bodiford on October 3, 2014 at 9:17pm
I have 473 acres of mineral rights in James Hope Survey A-22..Brazos county off Hope Creek Rd. Can anyone tell me if there is anything going on there?
Thanks for any info.....
 

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