New to this industry and would appreciate any insights. We have received a purchase offer for our share of oil & gas mineral “estate” of 158.225 acre tract of:
All located in Leon County. Anyone have any insights on recent activity in this area?
It depends on where the acreage is located within the county. Some areas are getting more than $12,000 per acre. The vast majority of unsolicited offers you receive via cold calls, texts, or mail are no good. For example, I just received a letter offering me $60,000 for what I own in a “unit/lease.” First, they don’t even know whether it’s a unit or a lease. Second, it’s a 40 acre lease, which works out to $1500/acre. Third, I’ve had offers of $12,000/acre already. Fourth, I own maybe 2% of the 40 acres, which will make them change their $60,000 offer to just $1200 in a couple of months after we’ve signed papers and they search courthouse records.
There is recent drilling activity west of your area, on the other side of I-45 targeting deeper Haynesville gas. It is currently a fairly hot play, with a lot of interest by leasing companies, but not a lot of drilling to date. Historically, gas plays have not amounted to much, given low natural gas prices in the U.S.
When gas prices were limited to just the US, they were market driven by US demand. As we saw during the early Ukraine war, LNG exports became very important and the prices went up for a season. With international demand part of the picture and data center demands in the US, natural gas will probably become very important in the coming years.
One place to keep an eye on the pulse of the energy world in the US is the Dallas Fed reports-new one just out:
Gas prices could see support from LNG export schemes over time. How much product is exported, how rapidly development happens to drill enough wells and get that gas to market (from Leon County) remains to be seen. It’s definitely a positive, but not one which, in my opinion, will make a significant boost to natural gas prices in the United States, at least in the near term.
Well said M_Barnes! Thanks
Go to topic “ UNDERSTANDING WELL SYMBOLS ON MAPS’ follow the directions and you can view any abstract in any county in the great state of Texas. This is coming from someone who lives in California. Blessings to all!
Thanks so much for that recap. Good to lower my expectations especially since I am just starting my research.
Thank you! I greatly appreciate the information.