Hi, I have also been contacted by a firm, San Saba Royalty Co about my mineral interest, in the Freeman-Creagor unit, 543 acres, T Caruthers survey, A-9, presently operated by Ener-Vest. I have no idea what is going on inregard to this property. I called Ener-Vest and they said I would have to put my request in writing to their land dept, which I am doing. I know the Eagleford play is moving that way, but I can get no info if something has been started or not. Is there anyone who could help with this, many thanks, jrs
What is happening in your area is that the Eagle Ford /Maness Play that Halcon has been making near College Station / Bryan is moving in your direction. Other operators (e.g. Apache, Anadarko, others) have been drilling for this target along trend from your area to the SW. Laredo Petroluem is presently drilling an Eagle Ford / Maness well near the Texas Speekway.
Companies like San Saba are probably looking to purchase minerals on the basis of the old production that has taken place in this area (e.g. the Enervest well you reference) hoping that mineral interest owners will sell for what they think is good money since their royalty checks have gotton smaller over the years.
Eagle Ford /Maness success in this area will drive up royalty payments assuming the play works as well here as it has in the area.
I doult that you will get any info of worth from Enervest on this whole issue. Not sure if they are planning to drill the EF / Maness section but they may be looking to sell these rights to a third party and let them drill this new target.
My advice - for what it is worth - is to NOT sell your minerals unless you really need to do so. And expect low ball offers early on from San Saba and others.
Many thanks Rock Man, your're a good guy! jrs/cks
Rock Man said:
What is happening in your area is that the Eagle Ford /Maness Play that Halcon has been making near College Station / Bryan is moving in your direction. Other operators (e.g. Apache, Anadarko, others) have been drilling for this target along trend from your area to the SW. Laredo Petroluem is presently drilling an Eagle Ford / Maness well near the Texas Speekway.
Companies like San Saba are probably looking to purchase minerals on the basis of the old production that has taken place in this area (e.g. the Enervest well you reference) hoping that mineral interest owners will sell for what they think is good money since their royalty checks have gotton smaller over the years.
Eagle Ford /Maness success in this area will drive up royalty payments assuming the play works as well here as it has in the area.
I doult that you will get any info of worth from Enervest on this whole issue. Not sure if they are planning to drill the EF / Maness section but they may be looking to sell these rights to a third party and let them drill this new target.
My advice - for what it is worth - is to NOT sell your minerals unless you really need to do so. And expect low ball offers early on from San Saba and others.
I recommend you read the responses from a previous post - http://www.mineralrightsforum.com/group/eagle-ford-shale-brazos-county-tx/forum/topics/going-rate-for-selling-mineral-rights
I have post the following on many other discussions:
Normally Initial Offers are rock bottom prices. Personally, I can't imagine anyone selling their mineral rights especially in such an active area. If you are determined to sell, I suggest you contact a some of the companies currently active in drilling in Brazos County such as Halcon, Anadarko, Clayton Williams, Vess and Apache.
I would also counter with 3 to 4 times that amount and see if they bite.
I have an "Eleventh Commandment" - Thou Shall Not Sell Thy Mineral Rights.
Hey Bill, well there are some reasons, mostly tax to consider such a thing. I was trying to get an idea of what was going on, I appreciate very much your comments. I had read where shale O/G depletes quickly, is that right, even if my acreage was drilled, I have seen boom and bust cycles, jrs
Unconventional reservoirs like the Eagle Ford will have high initial depletion in first year (e.g. 70-80%) and then lower yearly declines over the next several years until stabilized flow is attained. Assuming mechanical stability and stable O&G prices, one should be seeing 20-30 year total well lives.
The number of wells drilled on block is also key - 40 to 80 acre well spacing means a lot wellbores kicking off cash flow in any one area depending on the size of the unit in question. These multiple wells would probabvly be staggered over time so "cash upticks" may come into play years in the future as new wells are drilled.