Has anyone in Brazos County encountered Landmen wanting to lease their land for the possibility of oil & gas drilling? If so, what price per acre has been offered? What companies / landmen have you been contacted by?
I have been contacted by a landman for CML and am in the process of negotiating a lease. We have 2 different parcels we are trying to lease. The first offer to us was $220ac and 3/16 royalty. Currently the offer is $400/ac and 20% royalty for 3 years and they want a 2 year extension at $300/ac which I am not inclined to give at all and certainly not at a reduced price/ac. What have you been offered?
I feel we are close to market value with the $400/ac but would like to know what others have been offered recently.
What have they offered you? and where is your land located?
We have 500 acres off Weedon Loop and 300 acres in Harvey (close to where Fm 158 & Hwy 30 intersect)
Hi.....CML is who.......please?
Colette Gibbs said:
What part of Brazos county is your land located in? I have not been contacted by CML, but have been contacted by two other companies.
Marshall Jones said:I have been contacted by a landman for CML and am in the process of negotiating a lease. We have 2 different parcels we are trying to lease. The first offer to us was $220ac and 3/16 royalty. Currently the offer is $400/ac and 20% royalty for 3 years and they want a 2 year extension at $300/ac which I am not inclined to give at all and certainly not at a reduced price/ac. What have you been offered?
I feel we are close to market value with the $400/ac but would like to know what others have been offered recently.
pardon, trying to figure out this forum thing...........my place is off sandy point road...
understand most leasing out wellborn way...
anyone on the northwest side or know any companies leasing out that way?
thank you very much
CML is formerly Patterson Petroleum from Snyder, Texas. They are doing a lot of drilling in Grimes County. These offers are what they were offering two years ago and lease values have gone up a lot since then. Go for at least 23-24% royalty and no extension. Extensions are a bad deal for the mineral owner.
johnson said:
Hi.....CML is who.......please?
Colette Gibbs said:What part of Brazos county is your land located in? I have not been contacted by CML, but have been contacted by two other companies.
Marshall Jones said:I have been contacted by a landman for CML and am in the process of negotiating a lease. We have 2 different parcels we are trying to lease. The first offer to us was $220ac and 3/16 royalty. Currently the offer is $400/ac and 20% royalty for 3 years and they want a 2 year extension at $300/ac which I am not inclined to give at all and certainly not at a reduced price/ac. What have you been offered?
I feel we are close to market value with the $400/ac but would like to know what others have been offered recently.
I recently signed a lease with PetroMax near the Tabor Area of Brazos County in which we have 50% minerals of 200 acres. With our lease, it made the unit large enough to drill so that gave me some extra negotiation power. With that I was offered ¼ royalties and $800.00 an acre. After additional negotiations I was able to get $900.00 acre, ¼ royalties gross at the wellhead and had them remove the Mother Hubbard Clause. I also only signed a 3 year lease with no extension option because I know that if they do not drill by then there is a pretty good chance of not drilling later .
As important as the lease bonus is, I consider it the butter on the bread and the producing well is the steak on the plate. The real money comes over an extended time when the well is drilled so I generally sign with companies which are currently exploring/drilling in the area which PetroMax is doing.
6th Generation Texan said:
CML is formerly Patterson Petroleum from Snyder, Texas. They are doing a lot of drilling in Grimes County. These offers are what they were offering two years ago and lease values have gone up a lot since then. Go for at least 23-24% royalty and no extension. Extensions are a bad deal for the mineral owner.
johnson said:Hi.....CML is who.......please?
Colette Gibbs said:What part of Brazos county is your land located in? I have not been contacted by CML, but have been contacted by two other companies.
Marshall Jones said:I have been contacted by a landman for CML and am in the process of negotiating a lease. We have 2 different parcels we are trying to lease. The first offer to us was $220ac and 3/16 royalty. Currently the offer is $400/ac and 20% royalty for 3 years and they want a 2 year extension at $300/ac which I am not inclined to give at all and certainly not at a reduced price/ac. What have you been offered?
I feel we are close to market value with the $400/ac but would like to know what others have been offered recently.
Contact PetroMax - John Treece 214-797-0988
John is a very honest landman who I have great confidence in. I own mineral rights all over Texas and feel that PetroMax has been one of the best companies I have ever worked with.
You may want to mention my name - Bill Osborn
johnson said:
pardon, trying to figure out this forum thing...........my place is off sandy point road...
understand most leasing out wellborn way...
anyone on the northwest side or know any companies leasing out that way?
thank you very much