Does any land owner have recent data on current market bonus rates for a three year lease to include depth rights to the Buda?
Doug, I did a lease for $1,500.00 per acre back in January for depths to the Buda and just about 3 weeks ago I received an offer of $1,500 for depths to the Pearsall. I have not decided to do this lease yet. Hope this information helps.
Mr. Eardley, thank you for your information, were these both three year deals and cost free royalties?
Doug
Your welcome and yes they were.
Mr. Eardley, i just spoke with an oil and gas attorney who also owns a significant position in one of those companies that purchases royalty interests. He told me that an affiliate of his just took a lease near Asherton in which they paid $1,500 per acre and they feel certain that they can sell it for $2,000 in a worst case scenario and fully expect to get $2,500.
His counsel was to delay leasing as market is getting stronger. In addition, he suggested that if the lessor controlled significant acreage, cutting the lease into quarters and requiring that the oil company drill in each quarter during the primary term with continuous drilling obligation being required as if the lease were actually four different leases.
He rattled off about ten companies that are looking to take leases for which many were the usual suspects including the one so many lessors love to hate. I doubt you or i will be leasing to that company.
I think your numbers are sounding correct but possibly becoming stale with upward price pressure.
I wish we could get others on this board to be more open with what they are hearing and what they are thinking. Maybe in time…
Doug, Thanks for sharing the current information about leasing in Dimmit County. It is also good to hear that my information about leasing getting stronger in the next year or so is right on track. I have been telling a few of my friends this very same thing. I'm looking forward to the year 2014 through 2016 with better prices yet to come. Your are correct in not leasing to the lessor that everyone loves to hate. I agree with you that it would help all mineral owners if more would be more open with what they are leasing for and some of their terms. If we mineral owners stick together we could stop some of the dirty dealings that oil companies love to place on us mineral owners. The oil and gas is our property, without us they can't get to the oil.