Emily,
Zoomed out GIS Map of Dimmit County Abstract 737/Section 269:
Clint Liles
Emily,
Correction: Abstract 637/Section 269.
Clint Liles
When I pulled it in (with William's help), I found 1H 33922 in Section 8 of the Shaw Subdivision. So now, I wonder how I can tell what part of Section is leased and if it falls across my interest (or if it falls under pooling)?
Can someone provide the going rate for earnest/bonus for a 3 yr term/2 yr opt with 20% royalty for property in Dimmit Co.?
Emily, i would hold out for a 25% cost free royalty. I would also keep the term short. They are either ready to drill or they are taking a lease to flip it.
My most recent offer was for a 30 day extension. This was after a 58 day extension which was after an 18 month initial lease where one well was drilled with approximately five months remaining but for which the oil company could not find a rig…
My offer was $50 for thirty days, $90 for sixty days or $120 for ninety days, but if they failed to drill, i wanted the same as the bonus as a development penalty.
They did not accept my terms and so we will see if they commence drilling in next two weeks in order to operate und continuous development.
Oh, this lease was only for Austin Chalk or Buda formations.
Call me tomorrow if you want more info.
Doug
Anyone else receive a letter from ExTex Division Order Services regardi Exco operating wells in Dimmit, LaSalle, Frio and Zavala Counties?
Seems OOGC America LLC, a joint working interest owner has elected to take its share of oil and thus necessitating new division orders which i believe will result in multiple checks from multiple parties on these wells.
OOGC appears to be a CNOOC affiliate. OOGC appears to also be affiliated with NEXEN ENERGY MARKETING USA INC who will be disbursing a portion of the royalties.
CNOOC appears far stronger than EXCO and if i recall correctly CNOOC purchased a portion from Chesapeake with Exco acquiring the balance some time later.
To quote from the letter I received, "These payments will be administered on behalf of NEXEN and OOGC by ExTex Division Order Services.
Sorry but very new and naïve about mineral leasing. Have just been contacted by petroleum landman about leasing my mineral rights in Carrizo Springs and received a contract for me to sign and was unsure if I need to get a lawyer to checked it out first. Don't have many acres but still concerned. Also would like to know what the going rate for a three year contract
Hello Ruben, welcome to the Dimmit County Group! Glad to hear landmen are once again making the rounds in Dimmit County, maybe this means the oil business is starting to gear up again?
I leased my property in Catarina, 22 miles from Carrizo on Hwy 83, and my lawyer negotiate a bonus of $2500 per mineral acre back in 2014. I strongly recommend you hire a lawyer for the bonus phase and the royalty phase, same lawyer of course. Your oil/gas lawyer should negotiate for 25% royalty and other important details dealing with not only the Eagle Ford Shale but also the Austin Chalk, Buda, Pearsall, etc., shales as separate entities. Folks on this website are generous in providing links to helpful website. Hope this information has given you some sense as to how to proceed.
Hope, what percent of the minerals were you controlling?
My bonuses have been barely four figures covering large tracts with varying ownership indicative of prior reservations.
The most recent deals i have done have been using shorter terms at $750 which extending for 36 months could be viewed at 2x.
Thank you for sharing such that we might all get better.
Doug
Thank you very much Hope for your information. Im aware that things have really slowed down but the offer that they are proposing to me is $500 per net mineral acre for 3 years with 2 years option [ at $250 per net mineral} Royalty 1/5. Just wondering if that is the going price. Thanks again for all your help.
They appear to just be tieing up your property. You should be able to get 1/4 cost free royalty.
I would not do the option. That does nothing for you.
So now, do they want 12 months, 18 months or 36 months. Do they want all depths or just one formation? Where is there area of focus and how many wells have they drilled? Does their history show shallow chalk wells, but they want all depths.
My most recent deal was for Buda and Chalk only. It did not include Eagle Ford or any other formations.
In jan 2014 i leased for 18 months with a $650 bonus.
Most recently i was asked for a 30 day extension. I offerred 30, 60 or 90 day extension option at $50, $90 or $120 BUT if they failed to drill, their was a development penalty equal to the same.
Good luck.
We received a call from Sanchez oil for our property located off 517 Loop in Carrizo? Has anyone heard anything about them? What type of leases are being offered? We had a pool lease with royalties for several years under CML but they plugged the well
Randall - Sanchez Energy is a publically traded E&P company active throughout the Eagle Ford, but especially on the western side of the play. Follow the link below to their investor relations page, and download their Jan. 2016 Analyst Day presentation - 90+ pages. They show their acreage at that point as well as their thinking on the play. As to their leasing activity, I haven't heard anything of their being actively leasing in the play in more than a year. I'd say it's good news that they are interested. Go back through this group - past postings - to see members thoughts on lease terms...
Good luck!
http://investor.sanchezenergycorp.com/phoenix.zhtml?c=248475&p=irol-presentations
I received a division order for a well called “Charles B #1”
I amtrying to confirm the royalty and thus pulled up the gis viewer and visually searched for the well. I do not see it in the abstract that applies.
Can someone more knowledgeable than me (that is virtually no filter whatsoever), show me what abstract/tracts are assigned to this well?
Thank you
Good morning William,
I see no permit ever approved in the last 2 years for a Charles B #1 well. I do see an approved permit for a Roger B 1H well(Chesapeake)
Clint Liles
i did a lease with sanchez a couple months ago ...the deed i have reads an undivided one-fourth [1/4] of all our mineral and mineral royalty interest in and to all that certin forty [40] acres of land, more of less, in survey no. 7, h&gn rr. co. , abstract no. 125 in dimmit county, texas and so on it is just about 3 miles north of asherton texas and maybe less than a quater mile off hwy 83, to the east ....the lease is 500.00 an acer, for the 10 acers, for 3 years, with an option to renew, for 250.00 for 2 years. whats the chances ill ever see any real money out of this. the area dose seem to be very active but not right in my exact area ...anyone..thanks,... dan
oh yea ....the royalty is 20 per cent
I received a division order that provides a royalty percent slightly higher than expected. It is like $20 for every Million of production.
The lease I signed had a clause that stated no division order or transfer order was required with the following language "it shall not be necessary for Lessor to execute any division or transfer order in order to be entitled to payment of royalties under the Lease."
The Division Order says "The undersigned certifies the ownership of their decimal interest...The undersigned agrees to indemnify and reimburse {xxx oil co} any amount attributable to an interest to which undersigned is not entitled."
The lease terminates if they fail to pay royalty.
Should I sign the DO, recognizing that it is slightly different than what was represented to me, no way knowing with absolute certainty my ownership or rely on the no division order required language from the lease?
Mr. Archer, I never sign anything I don't have to. There is probably a perfectly innocent reason why your interest calculation is higher, the pool may have shrunk by a few acres.
I certainly wouldn't sign and return a division order that attempted to modify a lease on a temporary basis because you can still agree to anything. A new agreement every day.
Best not to agree to anything you don't believe is correct.
The division order may even say it can not change a lease and it can't. I think of it in the nature of a "new" stand alone side agreement that you could agree to which is effective until you rescind it.
Mr. Archer - TX has a statute that requires them to pay you within 120 days, and says you don't have to sign a division order that says any more than stipulated in the statute. You can find it here - scroll down to Sec. 91.402. TIME FOR PAYMENT OF PROCEEDS.:
http://www.statutes.legis.state.tx.us/Docs/NR/htm/NR.91.htm
Also, the TX RRC has a FAQ page, which includes information on Division Orders here (scroll down to Division Orders):
http://www.rrc.state.tx.us/about-us/resource-center/faqs/royalties-faq/
I think you will find that this article offers a thorough explanation:
http://www.oilandgaslawyerblog.com/2011/04/division-orders-what-you-need.html
I hope this helps.