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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: 400
Latest Activity: May 19

Discussion Forum

2015 Review

Started by John Sabia Jan 6. 0 Replies

Overall, 2015 was a bust for the oil and gas industry. It has forced U.S. drillers and operators to cut down capital budgets by the billions. Law firm Haynes and Boone LLP on Dec. 4 released its “Oil…Continue

Dimmit County Short Term Lease Extension Request

Started by William Douglas Archer. Last reply by Rock Man Jan 5. 1 Reply

I have been asked to extend a lease by 68 days that still has approximately 7 months remaining.  This was originally an 18 month lease, with depth limitations and still has over six months to…Continue

Keywords: lease, bonus, market, extension

Eagleford Rig Count Update

Started by John Sabia. Last reply by CClayton Dec 3, 2015. 1 Reply

According to the Baker Hughes Official Rig Count statistics, as we start to enter in the last month of the 4th quarter, there are currently 73 active rigs in all of the Eagle Ford Shale. Breaking…Continue

Eagleford Update

Started by John Sabia. Last reply by Rock Man Dec 2, 2015. 10 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

Comment Wall

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Comment by Daniel Baca on January 18, 2016 at 9:25am

I am now taking leases in Atascosa, Frio and LaSalle Counties. Feel free to Add me as a Friend and send me a message if you have land in these counties that you would like to lease.

Comment by Anna McNeill on December 11, 2015 at 7:13pm
Yes, there has been some interest in acerage off of 59 North of Beeville near the Medio Creek towards Berclair.
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.

 

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