For our Jones County offered lease we were told that at best we’d make $100/month if the horizontal well did great. If most attorneys charge $1000 to review a lease, how is that worth it? Also is it true horizontal wells may pay but only for a year or two and then they are depleted? I read a leasing handbook that said that vertical wells pump longer.
Keep in mind “Cheap work ain’t good, Good work ain’t cheap”. This is obviously an economic question, if you have a tiny interest it may not be cost effective. But if you have lots of acres, then that might be too little. Most attorneys will have terms to insert by way of amendment or otherwise and should be able to provide you a quote of the expected cost. Visit with a Texas attorney.
This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship.
Who gave you the income estimate, and what factors were available to them? Do they have anything to gain by lowballing a well’s performance? I’m guessing you haven’t signed a lease yet because you are still discussing the value of hiring an attorney. Also, You are posting in Panola county but the subject line references Jones county. Panola county is highly valued acreage, but without knowing net mineral acreage , it’s placement in relation to a well and the royalty% it’s hard to tell. If you have a survey/ abstract number you can look up on TRRC GIS viewer and get an idea of surrounding wells and performance .
It’s Jones county and I’ve been told by people in the know that horizontal leases there don’t pay as well as other areas. I tried to change the post and put Jones but it wouldn’t let me change it.
True true, thanks. I will look for a Texas lawyer.
The reservoir performance determines how long a well will last. Some horizontal wells are predicted to last over 50 years, so take the 10 years with some skepticism.
In general, gas wells last longer than oil wells since the gas molecules are smaller and get through smaller porosity and permeability.
Moved the post to Jones county for you.
Hello carsale…Patrick Flueckiger is who I suggest You get in touch with…https://www.flueckigerlaw.com/
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