Angelina Co., TX mineral lease opportunity

Oil and Gas Leasing Help
1

I was contacted today by a company interested in my mineral rights. Rather than the company propose an offer to me, they asked me to make them an offer. I have approximately 180 acres in Angelina county Texas. I’m not sure what the going rate is here in east Texas and I’m not sure where to even begin. I have had several leases in the past but have never had the chance to make them an offer. Any ideas or advice would be greatly appreciated!

Thanks, James

2

James,

Do you know of any production or activity in the area of your minerals? Production or activity in the area makes your bonus/royalty worth more. Just my opinion. If you will give me the Abstract # I will pull up the GIS Map so we can see what's in the area.

Clint Liles

3

Clint,

Thanks for the reply! I'm not currently aware of any production in my immediate area at the moment. There has been a lot of activity in Newton, San Augustine, and a few other counties which is around 50 miles east of me. I'm not sure what the abstract # is that you are referring to. Here is the information that was included in the e-mail, maybe that will help. 158.56 acres E. Gilliand survey, A-281, Angelina Co., TX. I just came out of a lease back in November of 2013. I recieved $500 per mineral acre, 1/5 royalty, and 3 yr lease w/2yr option.

Thank you,

James

4

James,

I see where a Horizontal well(30387) was drilled (wildcat well) in A-281 in Sept. 2009 by Harding Company to a depth of 10,000'. No completion report or other info found on this well. Also to the north of your A-281 are several horizontal wells drilled by Range Production targeting the James Lime(gas) Formation back in 2002-2003. I would say the numbers on the lease you came out of were fair for the area.

Drilling permit for well API 005-30387:

http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?methodToCall=searchByUniversalDocNo&universalDocNo=485774933&rrcActionMan=H4sIAAAAAAAAAL1Qu27DMAz8mnQUKClOvXAwinbuI2gGI4NiC44A2TIoGW0BfXxpFwVSp3MmHY-n45FZAqDKEiTKO6KmapILw2tDbQ1HXPgPezLjGJXgtojJJCvSp5jiRlclsELhRj09HiqGeoYtOe_d0D1b6l2KL5Olrx9b0QYWbbG36RzafXgw3jNRINk00bAPb9ZQc2aqRLhKU8elW1EXxWjI9O_GT3YJyRkACg26vJ-rAk-2c0M8uDSbsdufWqpVfalfjZW3O0L8XX6Ho-ksXSz570XksV7r5rAos0IJWTPYIuSC3x0T179vcs9vP7ReMmECAAA

GIS Map of Angelina County A-281:

0ce83fc5946835f4f0d1625cb2a81f7ff2ea6f8f.png600×600 29.3 KB

Clint Liles

5

Clint,

Thank You so much for your time and information! I think I might hit them a bit higher and see where it goes from there. Thoughts?

~James

6

James,

What is the name of the company offering the lease?

This link is to the Angelina County Group. You might want to join:

http://www.mineralrightsforum.com/group/angelina-county-tx-oil-gas

Clint Liles


7

Clint,

Indexas is the name I believe. They are out of Houston.

~James

8

Indexas LLC

http://indxs.com/about-us.html

James Childress said:

Clint,

Indexas is the name I believe. They are out of Houston.

~James

9

Dear Mr. Childress,

They are asking you to trade against yourself. This falls into the category of the beginning of a negotiation. Read here for some suggestions:

http://www.mineralrightsforum.com/profiles/blogs/negotiation-101

Best

Buddy Cotten

10

I would just tell them no thank you at this time. They will either come back with a concrete proposal or not. It sounds to me like they are fishing for someone to lease far below whatever the market value is, don't let it be you.

11

I had a company lease my 100 acres in Angelina county about 10 years ago. The lease amount then was $1500 per acre. There was speculation that a gas well may be in the works behind my property but after the 3 +2 lease was over, nothing happened. I did have a company offer $5000 an acre to buy the Mineral Rights about the same time, but I held out. Hindsight says I should have sold!

12

In the future I think you will be glad you didn't sell.

Clint Liles