Lubbock County, TX - Oil & Gas Discussion

Comment

Comment by JW Anderson on May 3, 2012 at 2:31pm

P.S. to David - Also a 5 year lease is NOT a good idea.  It is more standard to do a 3 year lease, although they would love to get you to sign a 5-year lease.  This should also be a negotiating point.  They will often ask for 5, but accept 3.

Comment by JW Anderson on May 3, 2012 at 2:28pm

David - I would not agree that this is a good offer.  The bonus money is fine ($300), but the royalty (15%) is unacceptable.  IMO, you should never accept a royalty less than 3/16, and negotiating for 1/5 or even as much as 1/4 should be your goal.  The bonus is a one-time thing, but if you get a well, the royalty itself is the important thing.  Royalties like 1/8 or 1/6 or 15% are a thing of the past.

Comment by JW Anderson on May 3, 2012 at 2:23pm

A. Lawson - Correct, there has been little activity in Hale County.  There is some existing production in the far SOUTHWEST corner of Hale County.  If someone is offering you a lease, that is certainly good news.  It may not be suprising that your offer is lower than other areas mentioned.  The royalty itself (3/16, 1/5, 1/4, etc) is a major consideration, other than just the one-time bonus money that you often hear reported.  I have some land very close to Hale Center, but have never had any kind of offer on it.

Comment by larry langford on May 3, 2012 at 1:30pm

On about Aril 13th Four Sevens received a permit for a horizontal sidtrack on their Teal unit.  The original had the horizontal going north northwest some 6000 feet, the new permit has the sidetrack going north northeast some 4000 feet.  Its an interesting development but I do not know if it is good or bad news.

Comment by A. Lawson on April 27, 2012 at 9:33am

My family owns some land north of Cotton Center and we have been approached with an offer to lease our land.  I have not heard of much activity in Hale County - there's not even a "group" - so I thought I would ask here.  Is there anything much going on north of Lubbock county?  Our offer doesn't compare to anything I see for those counties south and west of Hale County.  We've been advised not to be the first to lease but I having a hard time finding out anything.  I would appreciate any advice for a rookie!

Comment by david hill on April 10, 2012 at 2:34pm

Thanks brad I really appreciate. I live in victoria, tx so its hard to keep an eye on what's goin on. I'm a first timer in this business. But this looks promising so I might look into investing.... I don't know. But thanks again.

Comment by Brad Alan on April 10, 2012 at 1:54pm

David,In response to your question, I think that is a good offer.  I have leased several portions of my land for similar terms in and around that area you are referencing.  

Comment by david hill on April 10, 2012 at 9:31am

my wife and I just found out we own mineral rights between shallowwater and lubbock. We were contacted by a representative for dorado petroleum. We own 106 acres of a 640 acre tract. They offer 300/acre and 15% on a 5 year lease. I'm just trying to do my homework and get some insight to make the best decision possible. Not sure if this is a fair offer. Any advice would be great, thanks

Comment by e dubose on April 9, 2012 at 7:39pm

michael  look around you empresa drilling of lubbock highway first horozonal at 13200 in lubbock county ask for more money dont tell them that I said to 775 they hate that number ask 777 I have gotten 775 twice this year.

Comment by Michael R. Akins on April 9, 2012 at 5:54pm

New offer in Lubbock County. 5 Miles North of Idalou. 110 acres at $300.00 per acre for 3 years with a 2 year extension. Bonus draft unknown. 20% royalty. Norwood Land Services for Four Sevens Exploration. Lease Minerals only. No surface rights.

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