Grimes County, TX - Oil & Gas Discussion

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Comment by sharon lisa on April 14, 2013 at 4:50pm

Thank you guys for responding.  Hopefully it will start holding.

Comment by Wade Caldwell on April 14, 2013 at 12:10pm

If they drilled into a shale formation, it is not uncommon for production to drop 50-75% in the first year and then level out.

Comment by Captain Skittles on April 14, 2013 at 10:25am

Hi Sharon, welcome.  I, too, would like to know the answer to your question because it seems to be common theme with many on this board dealing with drillers and royalty checks.

Comment by sharon lisa on April 13, 2013 at 7:32pm

My names is Sharon and I am new to this forum.  I own mineral rights in Grimes county and have leased them to CML Exploration in Austin TX.  I began receiving royalty checks from CML  on 2 oil wells, Kagg1 and Kagg2, in August 2012.  My check in October 2012 was for $5000.00 based on oil production from both wells at 15,792 and 19,473 respectively.  By April 2013 my check was barely $2000.00 based on oil production of 4,992 and 5,152 respectively.  I talked with someone at CML and he did not seem to be concerned and even offered to buy my interest if I wanted to sell.  Is it possible for oil production to fall this quickly?  At this rate I don't expect the royalty checks to last through 2013.  I'm wondering if anyone knows of any problems peculiar to Grimes county or CML Exploration.  Any information offered would be appreciated.  

Comment by Captain Skittles on March 5, 2013 at 4:00pm

Jack wrote:  "be careful...$2000/ac for 1/4 royalty.  That sounds like the "wolves" calling that so many, many people have been talking about on this board."

The $2000/acre had me "howling" for sure.  That's quite a bit of money; the most I've heard of anyone getting in the Iola area is in the $700/acre dollar range.  If someone actually got $2000/acre, I sure would like to know who the Lessee was.  And you're right about landmen wanting to offer nothing for something.  I guess that's why I'm not leased.

Comment by Jack Ross on February 24, 2013 at 2:27am

This board is followed closely by landmen who want to offer nothing for something that will pay them handsomely for a long time, and the real exploitation of the Eaglebine, Georgetown and Austin Chalk has not really started as of yet.

For those of you who keep up with national news the number of foreign tankers entering our ports to offload crude has dropped significantly.  Of course Russia is raising hell for who knows what reason about the U.S. wanting to become energy independent.   It seems we are pretty close to the mark.

Comment by Jack Ross on February 24, 2013 at 2:23am

Captain Skittles:  be careful...$2000/ac for 1/4 royalty.  That sounds like the "wolves" calling that so many, many people have been talking about on this board.

I know this much from having talked to a Land Broker in Grimes County.  No one is leasing their land,  and he said that no property was being sold that included the royalty interests in over 35 counties in East Texas. She and others are all keeping their RI in the family so to speak.  I know one young lady who had family in Grimes and Madison County and she gets about 50 checks a month for as little as 1/128th interest and she is getting almost $3000 per month in royalty payments from all of her long deceased relatives who left her something in their wills in the form of a royalty interest.

Comment by MVWoods on February 23, 2013 at 1:36pm

I am a mineral rights owner.  Does anybody have any recent information about development, leasing, or offers to buy in South Grimes county (East of Navasota, North of Hwy 105)?

Comment by Captain Skittles on February 23, 2013 at 9:18am

Bubba Smith quote:  "I have heard leased minerals are going for 2000+/acre with a 1/5 to a 1/4 royalty."

---------------

Do you happen to have the names of some of these E & P/Drillers who paid this much per acre in Grimes?

 

Thanks.

Comment by Jack Ross on February 22, 2013 at 3:40pm

Bubba,

Thanks for the info below, but it is off my beaten path somewhat.  I have the non-participating royalty interests.  Although the oil company has to send us a waiver to allow them to drill deeper if they want to go deeper, like they did in 2000.  But we still have a NPRI (according to our lawyer).

And he was the one who let us know that the original lessor went off from the lessee in 1952 and gerrymandered the unit so that instead of 1/8th RI, we would get 1/16th for our 320 shares and /32nd for the remaining 320 ac in the unit.  Using your formulae that your taught me last night that means we have 30 acres at 100% royalty interest.  We could say we are stupid enough to want to sell these for $25,000 per acre divided by the 320 ac. - $2343/ac. plus the price of the land. 

 

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