Thanks so much for the prompt reply! This definitely gives me some fuel when we call the guy in Midland on Monday. My husband thinks that the land that we have the minerals rights is to the west of Hwy 87, closer to Brownfield. I guess we can call the county clerk and ask about getting names of other landmen who are interested in this area and a sectional map to find our property. Is your property in this general area too? How long ago were you contacted about leasing?
Again, I really appreciate your comments and help.
Nancy
Derek Timmons said:
Nancy you should be able to get the full 25% royalty period. That is your money. We hired an attorney who deleted over 14 lines of our contract, raised the gas royalty by 25 times and got us 25% royalty up front. Also our 2 year bonus option is for 400.00 per acre or going rate at the time. If they hit oil in the next 18 months these per acre leases are going to skyrocket and there is no way they are going to be able to drill on all these tracts in 3 years. Hope that helps. Derek
Gene Finley said:
Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:
We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I hope this forum will continue.
We called and told the landman that after doing some research decided that the $200 per acre offer was only about half of what we would want. He told us he would check with the company and let us know and that he thought that it was also a low offer. (I was surprised he said this.) The next day he called back and said that at the moment they could not offer more but that he thought that they were going to have to go up as there was more interest in the area now and bids were getting more competitive.
I also asked it there was drilling yet in Terry county and he said that the interest was just starting there, that there was more in Dawson.
For you folks that own in Terry Co, we were offered $500/acre, 3 yr lease ( didn’t want the lease to be a 5 yr) and 25 % royalty. Don’t take the first offer…If we decide to release, we will only lease at $500 acre . Two diff. companies have paid us…now waiting on the 1st rigs to drop sometime ( they say…) in May…but can be up to 2 yrs. Good Luck! NEGOTIATE, that is what I learned, the landman were hungry and out bidding each other.
For you folks that own in Terry Co, we were offered $500/acre, 3 yr lease ( didn't want the lease to be a 5 yr) and 25 % royalty. Don't take the first offer....If we decide to release, we will only lease at $500 acre . Two diff. companies have paid us......now waiting on the 1st rigs to drop sometime ( they say...) in May..but can be up to 2 yrs. Good Luck! NEGOTIATE, that is what I learned, the landman were hungry and out bidding each other.
Thanks for the update, Amy. I turned down the first offer about a month ago; the landman said he thought that his bid was too low too but would have to wait for the company to agree to increase their bid. We have not heard from him since then, so we just wait. I wonder if it would do any good to visit the court house there and try to contact other companies.
Please keep us posted on any drilling . Thanks again, Nancy
Can I ask what was your offer? We were first offered $250, than up to $400 and up again to $500. Two Oil Co. were bidding against each other.........I could of gone higher I am pretty sure. Why I didn't, I don't know why. We had other family members that took the 1st offer, and we waited and got quite a significant more....but felt we shouldn't go higher, because they were already locked in and we felt we weren't being fair. So we stopped at $500/acre. We own a couple hundred....so were happy with the pay out. Now, we all wait. I would contact the landman that called you 1st....and see what offers they have for you. Try it. Don't ask desperate..just inquire. Also, don't sign over a 3 yr........and get your 25% in writting:)
Nancy Heath said:
Amy Anne White Smith - Pickett said:
For you folks that own in Terry Co, we were offered $500/acre, 3 yr lease ( didn't want the lease to be a 5 yr) and 25 % royalty. Don't take the first offer....If we decide to release, we will only lease at $500 acre . Two diff. companies have paid us......now waiting on the 1st rigs to drop sometime ( they say...) in May..but can be up to 2 yrs. Good Luck! NEGOTIATE, that is what I learned, the landman were hungry and out bidding each other.
Thanks for the update, Amy. I turned down the first offer about a month ago; the landman said he thought that his bid was too low too but would have to wait for the company to agree to increase their bid. We have not heard from him since then, so we just wait. I wonder if it would do any good to visit the court house there and try to contact other companies.
Please keep us posted on any drilling . Thanks again, Nancy
We were offered $200 an acre with 1/5 royalty for 3 years and a 2 year extension option. Then they went to $250 and we said, "No" that $500 should be a minimum and 25% royalty. We have not heard back. I wonder if they have had many contracts signed around us. We also have several hundered acres of just mineral rights. I would like to find out what other companies are in negotiations so we could see if they are interested. Someone suggested that we contact the courthouse there. We did but they did not give us any names; I am guessing we will have to make a trip out there to see.
We were offered $200 an acre with 1/5 royalty for 3 years and a 2 year extension option. Then they went to $250 and we said, "No" that $500 should be a minimum and 25% royalty. We have not heard back. I wonder if they have had many contracts signed around us. We also have several hundered acres of just mineral rights. I would like to find out what other companies are in negotiations so we could see if they are interested. Someone suggested that we contact the courthouse there. We did but they did not give us any names; I am guessing we will have to make a trip out there to see.
My family owns 160 acres near Neadmore in Terry County in the NORTHWEST ONE-FORTH OF SECTION 43 BLOCK 4-X and we have a current offer for $300 an acre with 22.5% royalty. We are going to coungter offer for $500 and 25% royalty. The two companies listed in the Lease are Marshall & Winston, Inc., of Midland, Texas and Hanley Petroleum, Inc., also from Midland, Texas. Our attorney is interested in what other companies are negotiating in the county and would possibly like to contact them if our current counter offer is not accepted. We have been told the same thing that they want to start drilling in May and June. I have been advised that these are "Mom and Pop" type companies that are trying to lease as much land as possible with the intent of drilling in a select few spots that may be successful. I have also been advised that these companies just do not have the resources to drill and that drill companies are backed up with work becuase of all the drilling currently taking place in the Eagle Ford and Midland area. Terry County is not a sweet spot and is not in the interest of any of the big companies at least not at this time. I have been told that the best chance for money is in the bonus and if we see any royatlites that we would be fortunate. There seems to some local hype about Terry County and the smaller companies have an interest in bringing in the new technology (CO2 Enhanced Oil Recovery) and extracting the oil in the Mississippian Shale that is below Terry County. I have been told that the oil below Terry County is a good commercial grade oil but how prolific it can be remains to be seen. There is certainly a lot of information and geological studies by the U.S. Department of Energy that show a tremendous amount of proven reserves in the Permian Basin. I hope they are right and Terry County mineral owners and land owners see success.
Thanks,
Craig
I hope they are right andAmy Anne White Smith - Pickett said:
Amy Anne White Smith - Pickett said: you can always try South Plains or Shaw Interest. These are just some of the ones that have contacted us.......there are so many.......hope this helps.
Nancy Heath said:
We were offered $200 an acre with 1/5 royalty for 3 years and a 2 year extension option. Then they went to $250 and we said, "No" that $500 should be a minimum and 25% royalty. We have not heard back. I wonder if they have had many contracts signed around us. We also have several hundered acres of just mineral rights. I would like to find out what other companies are in negotiations so we could see if they are interested. Someone suggested that we contact the courthouse there. We did but they did not give us any names; I am guessing we will have to make a trip out there to see.
Hi Amy I saw you mentioned South Plains and Shaw Interest is there another company that you ended up signing with. Thanks for the helpful info.
Craig
Craig said:
Hello,
My family owns 160 acres near Neadmore in Terry County in the NORTHWEST ONE-FORTH OF SECTION 43 BLOCK 4-X and we have a current offer for $300 an acre with 22.5% royalty. We are going to coungter offer for $500 and 25% royalty. The two companies listed in the Lease are Marshall & Winston, Inc., of Midland, Texas and Hanley Petroleum, Inc., also from Midland, Texas. Our attorney is interested in what other companies are negotiating in the county and would possibly like to contact them if our current counter offer is not accepted. We have been told the same thing that they want to start drilling in May and June. I have been advised that these are "Mom and Pop" type companies that are trying to lease as much land as possible with the intent of drilling in a select few spots that may be successful. I have also been advised that these companies just do not have the resources to drill and that drill companies are backed up with work becuase of all the drilling currently taking place in the Eagle Ford and Midland area. Terry County is not a sweet spot and is not in the interest of any of the big companies at least not at this time. I have been told that the best chance for money is in the bonus and if we see any royatlites that we would be fortunate. There seems to some local hype about Terry County and the smaller companies have an interest in bringing in the new technology (CO2 Enhanced Oil Recovery) and extracting the oil in the Mississippian Shale that is below Terry County. I have been told that the oil below Terry County is a good commercial grade oil but how prolific it can be remains to be seen. There is certainly a lot of information and geological studies by the U.S. Department of Energy that show a tremendous amount of proven reserves in the Permian Basin. I hope they are right and Terry County mineral owners and land owners see success.
Thanks,
Craig
I hope they are right andAmy Anne White Smith - Pickett said:
Amy Anne White Smith - Pickett said: you can always try South Plains or Shaw Interest. These are just some of the ones that have contacted us.......there are so many.......hope this helps.
Nancy Heath said:
We were offered $200 an acre with 1/5 royalty for 3 years and a 2 year extension option. Then they went to $250 and we said, "No" that $500 should be a minimum and 25% royalty. We have not heard back. I wonder if they have had many contracts signed around us. We also have several hundered acres of just mineral rights. I would like to find out what other companies are in negotiations so we could see if they are interested. Someone suggested that we contact the courthouse there. We did but they did not give us any names; I am guessing we will have to make a trip out there to see.
We received our offer from Double Eagle Development, LLC in Midland. Thanks for your information!
Nancy
Craig said:
Hi Amy I saw you mentioned South Plains and Shaw Interest is there another company that you ended up signing with. Thanks for the helpful info.
Craig
Craig said:
Hello,
My family owns 160 acres near Neadmore in Terry County in the NORTHWEST ONE-FORTH OF SECTION 43 BLOCK 4-X and we have a current offer for $300 an acre with 22.5% royalty. We are going to coungter offer for $500 and 25% royalty. The two companies listed in the Lease are Marshall & Winston, Inc., of Midland, Texas and Hanley Petroleum, Inc., also from Midland, Texas. Our attorney is interested in what other companies are negotiating in the county and would possibly like to contact them if our current counter offer is not accepted. We have been told the same thing that they want to start drilling in May and June. I have been advised that these are "Mom and Pop" type companies that are trying to lease as much land as possible with the intent of drilling in a select few spots that may be successful. I have also been advised that these companies just do not have the resources to drill and that drill companies are backed up with work becuase of all the drilling currently taking place in the Eagle Ford and Midland area. Terry County is not a sweet spot and is not in the interest of any of the big companies at least not at this time. I have been told that the best chance for money is in the bonus and if we see any royatlites that we would be fortunate. There seems to some local hype about Terry County and the smaller companies have an interest in bringing in the new technology (CO2 Enhanced Oil Recovery) and extracting the oil in the Mississippian Shale that is below Terry County. I have been told that the oil below Terry County is a good commercial grade oil but how prolific it can be remains to be seen. There is certainly a lot of information and geological studies by the U.S. Department of Energy that show a tremendous amount of proven reserves in the Permian Basin. I hope they are right and Terry County mineral owners and land owners see success.
Thanks,
Craig
I hope they are right andAmy Anne White Smith - Pickett said:
Amy Anne White Smith - Pickett said: you can always try South Plains or Shaw Interest. These are just some of the ones that have contacted us.......there are so many.......hope this helps.
Nancy Heath said:
We were offered $200 an acre with 1/5 royalty for 3 years and a 2 year extension option. Then they went to $250 and we said, "No" that $500 should be a minimum and 25% royalty. We have not heard back. I wonder if they have had many contracts signed around us. We also have several hundered acres of just mineral rights. I would like to find out what other companies are in negotiations so we could see if they are interested. Someone suggested that we contact the courthouse there. We did but they did not give us any names; I am guessing we will have to make a trip out there to see.
Craig, my mother has mineral rights 1 mile south of Needmore on hiway US 395on the west side. It is N/2 of sect 5 block D8. Are your mineral rights near hers? Thanks.
Anybody see any drilling activity starting in the area? There was some talk they might start in May/June but suspect it could be awhile to come based on how busy the rigs are in other areas. Any insight would be appreciated.
Based upon the lack of responses, not sure much is going on in Terry County. I have a lease offer, but based upon my discussions with the operator, they don't have plans to drill on my piece of land any time soon. They did talk about starting on some other pieces of property in Terry county, but I don't really see much going on.
I thought Terry County was part of the Wolfberry play, but the action is limited. Anyone hearing something different?
Hi Gene. I found this post and just joined this forum. My name is also Nancy and I was contacted by the Ramsey Petroleum LP in Midland. Can you tell me how your experience was with them? The landman that contacted me is not Scott, but a Chris Arreguy. They are now offering me $375/per net mineral acre and 22.5% royalty for 3 years. This is up from $350/acre and 1/5 royalty.
Nancy Mickey - would appreciate your feedback.
Gene Finley said:
Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:
We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
I also have a offer for 23% royalty on 10 acres , my part of 80 acres with one sixteenth interest for 3yrs plus 2 for $400.00 per acre , I could not get him to budge at all.Our rights are on the west half of the west of section 62 block 4x hope this helps.
The offer depends on how much acreage you have and how much of a % of the rights you hold , by the way things are going they are in a hurry to close the deal and start exploreing , Iam told by another land man that if I dont sign soon they will explore around me and my small % and land plot will be of little value to them because of the extra expenses in exploring that small 10 acres.
$400 per acre for 3 years with 2 year option plus “25%” in western Dawson county!
Nancy Mickey said:
Hi Gene. I found this post and just joined this forum. My name is also Nancy and I was contacted by the Ramsey Petroleum LP in Midland. Can you tell me how your experience was with them? The landman that contacted me is not Scott, but a Chris Arreguy. They are now offering me $375/per net mineral acre and 22.5% royalty for 3 years. This is up from $350/acre and 1/5 royalty.
Nancy Mickey - would appreciate your feedback.
Gene Finley said:
Nancy: We have 4 land parcels that we have lease. Bonus payment has been $400-$425 per acre with 22.5% royalty. Primary lease term has been 3 years with one 2 year option (same bonus payment). The last company we dealt with is Scott Ramsey, Ramsey Petroleum, LP, Midland. His email is sramsey@t3wireless.com. I am giving you this info, not meant to be an endorsement, but to provide you with at lease one alternative. I know several other mineral owners who have held out for at least $400 per mineral acre and they have prevailed. One attorney in Lubbock and another in Brownfield tell me that $400 is "about the going rate".
Hope this helps. Call me at 512-413-7591 if you would like. I live in Austin.
Gene Finley
Nancy Heath said:
We have also been contacted about leasing land in Terry county. I have just found this forum and appreciate the information. We were offered $200 an acre with 1/5 royalty for a 3 year primary term and 2 year extension at $200 per net mineral acre. The property is described as being the West-half (W/2E/2)of section 8, block T, D&WRR Co and the Middle 1/3 of the East 480 acres of Section 2, block A.B. & M. Since we are in Arlington, I am not sure whether this is on the east or west side of the highway that has been previously mentioned
We were contacted by Double Eagle Development in Midland. I think we plan to call back and ask about counter offers.
Mine was on the cover letter near the bottom in red.
Mark
Kool Kotton said:
I have received a lease draft from a land man and he indicates, "The bonus amount is never in the body of an Oil & Gas lease." He states in his e-mail the amount of the bonus up front amount. My question: is this true? An oil & Gas lease does not have in writing the up front bonus amount?
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
Nancy: do you own all the minerals of the 480 acres? It is difficult to figure if your offer of $375 is OK or low or high without knowing location. Several months ago, we agreed to and accepted $425 to $450 per mineral acre with 22.5% Royalty and three year lease with option to renew for two years. There are report of really good wells west of Brownfield. “Street” talk is that there will be quite of bit of new drilling as soon as rigs become available.
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.