Is there any going on presently?
HI Clay. There seems to be some activity in eastern Mitchell county currently. There are 3 to 5 companies leasing the land up near Colorado City and Lorraine.
Interesting. I wonder at what depth? Are you out there now or from there, Robert? Thanks for the reply.
What depth? Good question. My understanding is there has been very little drilling in the area recently, but a new well went in south of I-20 and came in around 450 BOD. I do not know what depth though. I am thinking it is deeper in the 8,000' range, but this is just speculation on my part. I was born out in west Texas and have land there, but I am not out there currently. Good luck!
Clay Strange said:
Interesting. I wonder at what depth? Are you out there now or from there, Robert? Thanks for the reply.
The same with me. Colorado High, class of '65.
What are they leasing for?
I've heard $350 an acre, 20% royalty. In the Cline
shale. East of CCity.
Kimberly Parks said:
What are they leasing for?
Thank you
Clay is correct at $350 per acre and 20% royalty. However, 1 oil company is trying to fill in some of its acreage in the area and is willing to pay $425 to $450, so my attorney told me. Also, there is a speculator there, not an operator, who is willing to pay $425 to $450 and 20% or 21% in the hopes he can sell that for more down the road. However, you will not be in control if you lease to a speculator. Good luck!
There are three of more companies leasing everything they can get in Mitchell county. One is a huge international oil company ( Devon) and they are offering up to $450 for some of our acreage and $350 for other (22 and 20% royalty). Another leasing company is concentrating on the eastern and southeastern portion of the county and are even going as high as $500 per net acre. A speculator is going $450 and 22% on every one that will sign with them. Devon appears to be about to stop leasing and start punching holes; at that point anything could happen from the leasing bottoming out or the leasing prices booming higher.
That's great! Good luck.
Ginger more said:
There are three of more companies leasing everything they can get in Mitchell county. One is a huge international oil company ( Devon) and they are offering up to $450 for some of our acreage and $350 for other (22 and 20% royalty). Another leasing company is concentrating on the eastern and southeastern portion of the county and are even going as high as $500 per net acre. A speculator is going $450 and 22% on every one that will sign with them. Devon appears to be about to stop leasing and start punching holes; at that point anything could happen from the leasing bottoming out or the leasing prices booming higher.
Thanks for the info. I've got a company called LMD that appears to be pretty aggressive regarding my land just East of Loraine on I20. They started at $300 and 20% and just upped it to $350 today before I really even discussed it with them.
Pete, I think the LMD guy is probably representing Laredo Petroleum. I have the name of a good attorney from C City who has helped me a great deal in that area if you want his name and number. It wasn't but 5 years or so ago you could have bought land out in that area for $400 to $450 an acre. Best of luck to you Pete.
Robert
Pete Phillips said:
Thanks for the info. I've got a company called LMD that appears to be pretty aggressive regarding my land just East of Loraine on I20. They started at $300 and 20% and just upped it to $350 today before I really even discussed it with them.
yes, I too have the name of a good o&g atty in CCity----
Hi Ginger. Is your o&g atty named Ty by any chance?
yes
He is a good guy and has helped me get some higher lease bids. I hope you have/had good luck with him as well. i sure am curious to see who, when, and where they are going to start drilling out in the C City / Loraine area.
yes, very happy with his work and getting the best $ possible---he really upped our deal and built a better contract!
Anyone have any thoughts on if the leasing in NE Mitchell Co near C City and Loraine has peaked either in lease bonus or just in general lease activity in the area? Seems like Firewheel Energy and Laredo have been the 2 main players that I know of, but I haven't heard anything new in this area lately. Thanks!
I heard that there were some offers for 700-1000 coming in from an individual from out of state...anyone know about this?