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Eagle Ford Shale - Oil & Gas Discussion


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: 391
Latest Activity: Nov 13

Discussion Forum

Eagleford Update

Started by John Sabia. Last reply by Rock Man Nov 13. 8 Replies

As a mineral owner in the Eagle Ford, Vine Royalty likes to stay up on trends and happenings in the shale. Below is a list of moves made by the big operators in the Eagle Ford. Let me know what…Continue

Keywords: Natural, Resources, shale, Pioneer, Noble

Lease-Option to Extend

Started by Betsy Thomas. Last reply by Charles Emery Tooke III Nov 12. 4 Replies

Our property in Burleson Co( G.B. Wrath, A-21) was leased in February of 2013 for $500 an acre for 3 years with an option to extend for $550 an acre for 2 more with 22.5% royalty (stated in the…Continue

Terminology Question

Started by Melissa Nelson. Last reply by Melissa Nelson Oct 24. 15 Replies

  What does the interest type UMI stand for?  Continue


Started by gabby. Last reply by john yertis Sep 5. 21 Replies

I am curious if any of you have heard of Delgado Leasing?  They approached us on leasing our property the lease we have not is with Geosouthern and comes to an end next March.  Any suggestions? Continue

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Comment by Curtis Deussen on October 1, 2015 at 2:23pm
My neighbors just leased their land and rumor is that a 10,000 acre block was leased right by me (Western Bee County just south of hey 59). A little surprising with the price of oil. Does anyone have an idea of what is going on?
Comment by William Douglas Archer on October 1, 2015 at 1:52pm
Yes it is 25% cost free royalty
Comment by Rock Man on October 1, 2015 at 1:47pm

Are you looking at a 25% royalty to go with the extension?

I would think 18 month extension (which is on the short side - normally see 2 year kickers- would go for $750 to $1000 per net mineral acre right now.

Note - CML has historically been an Austin Chalk driller in Dimmit County - so having good Pugh clause in place to get deep rights severed after primary term is mandatory.

Crimson had done a lot of Buda drilling but also go after Eagle Ford (although they have slowed down on the latter)

Comment by William Douglas Archer on October 1, 2015 at 1:39pm

Looking at activity in the county clerk's office,  there appears to be four oil companies that have taken leases over all or part of this 2,000 acre tract:  Eagle Ford Minerals, LLC, Crimson, CSA Exploration, and CML. 

CML is permitted to drill a well called "Barrier" to the west of this tract and I have a lease with them on A-636, 669 and 670. 

CSA was the landman for Eagle Ford Minerals and the Landman for CML when I leased to both of them but my leases were directly with EFM and CML and I have not spoken  with CSA in six months or more.

Being that much of the minerals on A-603, 149, 150, 151, 154 and 155 are currently leased and thus bonuses have been paid and term is running,  what should a Lessor such as me expect to receive for extending for 18 months when my brother and I control approximately 10% of the minerals on this tract?

Comment by Rock Man on October 1, 2015 at 11:10am

There has been zero permit activity in the surveys you have mentioned over the past several years.

Comment by William Douglas Archer on October 1, 2015 at 10:57am

Is anyone aware of any activity in Dimmit County, on Abstracts 149, A-150, A-151, A-154 and A-155?  My lease expired yesterday and it had been with Eagle Ford Minerals, LLC.  this is also known as the Dixondale tract.

Comment by CClayton on September 1, 2015 at 2:33pm

I was exaggerating when I said I would accept $0 bonus, but if free is not unheard of, I suppose it could be an option. Mainly I just wouldn't worry nearly as much about the amount of the bonus for 18 months as about the amount of royalties for many years. With the large # of acres you have rights to, even a small bonus per acre would add up to a significant amount of money. Good luck with the drilling & production! Rock Man made it sound like you'll need some of that too. We're in McMullen on the west edge next to LaSalle County, which I think is supposed to be a resourceful area for depth, but with the scaling back on production by EOG in our area, and your company perhaps drilling for all they can in your shallower area, the two may end up being comparable in production for a length of time. Somewhere I read a company like EOG doesn't need to produce as much at lower prices as some smaller companies do to maintain.

Comment by William Douglas Archer on September 1, 2015 at 1:26pm

Market may have changed.  I did one deal in January on an 18 month term at a bonus 20% above your low Crimson number.  This deal had depth limitations thus allowing me to lease the deeper rights to another company. This company was looking for the shallow Austin Chalk oil.


I dont think Exco drilled those wells, but rather Chesapeake.  Chesapeake then sold or assigned or transfered a number of wells to Exco. 


This particular area is about 2,000 gross acres with very little activity due in part to difficulty in determining ownership when it was parcelled out in 10 acre tracts and sold as the "Bermuda Colony."  Sounds like the Texas Rivierra.  Who wouldnt want to build their retirment home here?  Now it has the prospect of being above the Eagle Ford Shale play but also has Austin Chalk, Buda, Pearsall and maybe even other formations. 


it is a matter of time until these minerals are worth considerably more than they are today. This giant fed intervension has been nothing but a tax on savers, a redistribution of wealth and giant social experiment.  At some point all this debt has to be repaid and the only way to do that is thru dollars worth less tomorrow than they are worth today.  Couple that with so much of the world that is finally becoming industrialized, with a standard of living that is increasing and you have a perfect storm for these type assets to be worth far more in the future.

What I am most surprised about is the masses fear of missing, fear of negoitating these lease offers and willingness to accept what is represented as "standard" language.  These are contracts and you can negotiate anything you want.  If they need you, they will come back and if you are reasonable they must keep their prospect pipeline filled.

Comment by Rock Man on September 1, 2015 at 1:00pm

This area is Dimmit County has not been great with respect to Eagle Ford completions. Section here is relatively shallow (less than 7000') so lower formation pressure (which impacts EUR). Also, total EF section on about 100' thick with the "sweet spot" only about 50' thick - so O&G in place low with respect to other areas in the trend (and when you are only looking at single digit recovery factors, oil in place is very important). EXCO has drilled numerous wells on trend to the west with very similar results - relatively low IP's with the need to major artificial lift installation within the first year. Then low (100 BOPD rates or less) as the wells move along over time. EUR's in the 200-400 MBO range (plus about 750 to 1000 CF gas per BO).

Potentially skinny economics unless operator can get their well costs down under $6 MM D&C.

EXCO frac'ing wells with about 1000 pounds per foot of section - larger fracs may help performance (but add to costs).

I found info indicating that Crimson / their brokers were paying anywhere from $500 to 1250 per net acre for 3 year leases with 2 year extensions in 2013 and 2014.

Bonus numbers would probably be less today.

That's about it on what I know about this area.

Comment by William Douglas Archer on September 1, 2015 at 6:05am
Rockman, this particular area is Dimmit County, A-149, 150, 154, and 155

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