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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: 434
Latest Activity: Aug 22

Discussion Forum

Gambit Oil Company - Bankruptcy - Have seized leases been released by the courts - yet?

Started by Jayne Burgin Stokes Aug 1. 0 Replies

Hi Everyone - does anyone know if Gambit Oil Company's seized leases have been released yet? I have 30 acres in the Bermuda Colony in Dimmit County that were seized and now tied-up in bankruptcy…Continue

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

Started by Robyn Barziza Chargo. Last reply by Jayne Burgin Stokes Aug 1. 7 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

Eagleford Update

Started by John Sabia. Last reply by Rock Man Jan 14. 19 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

2015 Review

Started by John Sabia Jan 6, 2016. 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

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Comment by CClayton on August 31, 2015 at 4:35pm

My family received $750 per acre total for a 3 year lease with one renewal option, so $250 per acre per year. The lease was renewed after the first 3 years, and royalty payments started a little over a year later. It's my understanding that it's standard practice for lease payment obligations to end when royalty payments begin, so bonus payments aren't as important as royalties, and 25% cost free is very generous. We're getting 20% with taxes and some smaller costs deducted. I don't understand why there was so much variation in your ownership %, since most of that % would have been clearly specified in your earlier purchase of the property or by your family inheritance. Many people and families came into ownership of one or more 10 acre tracts first sold & purchased in the early 1900s, and the oil company surveys showed ours to be only slightly skewed in our favor. For example, my 1/8th share in my family's 10 acres went from 1.25 acres to 1.35, but I suppose if you own a lot of acres, a similar difference could add up. What do you mean by a "development penalty"? Haven't seen that discussed anywhere during my months on this forum and another.

Comment by William Douglas Archer on August 31, 2015 at 1:34pm

I have received an extension offer which includes all depths including the Eagle Ford Shale.  The lease as it exists includes a 25% cost free royalty.  What is a reasonable range of bonus payment per acre.  I hold approximately 5% of the minerals which coincidentally is 18% more than what they said I owned three years ago.  Further this initial offer is $5,000 more than waht they really should be paying me from miscalculating my acres owned last time x the bonus and development penalty.

Comment by Rock Man on April 27, 2015 at 12:22pm

Go the Tx RRC site and look in the GIS mapping section - find your abstract / area and you will get an idea of activity.

Do you have your abstract number?

Comment by Valdemar on April 27, 2015 at 12:14pm

Hi, 

I own 50% of the mineral rights to a property in Dimmit county. About a decade ago, I was given a small amount of ernest money for an oil lease but the oil company let the lease lapse. The company had a hard time finding us before we were paid the ernest money, and I'm worried that we will not be contacted if there is any sort of activity that has happened on the property in the last 10 years. What is the best way for me to find out if there have been any leases or activites going on in that property. Once again, I only own mineral rights, not the rights to the land. I know that the Eagle Ford Shale has been producing quite a bit lately and it just sparked my interest. 

Comment by Jane T. Wilhelm on April 23, 2015 at 11:24pm

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. 

 

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