East Texas Energy and Key Exploration have written several hundred leases in Cherokee County since 2021. They began with two-year seismic options followed in many cases by oil/gas leases with three-year primary terms.
East Texas Energy has 97 leases in which the primary term expires in April. I expect we could see an assignment, or at least some extensions, in the next few weeks.
Alan: do you have the abstract numbers associated with the soon to expire leases or additional nearby areas of intetest?
Not much is happening in Cherokee County. ALTHOUGH there is some activity. Most of the haynesville shale is Panola & shelby. I would see them expire
Something is happening in Cherokee County, we just don’t know what it is yet! Somebody did seismic work on more than 50,000 acres and converted more than 90% of seismic options into O/G leases. Somebody also extended the primary term on a bunch of leases but lengthened the extension from two years to four years.
It’s developing slowly, but it continues to develop…
Thank you both for the update.
Changing the option term from two to 4 year’s and the option payment amount happened to me with a small acreage with EOG!
Mineral_Owner5 are you saying that EOG paid your option payment?
I usually never agree to an option term. I had a small tract of minerals I had bought and EOG offered a large bonus and option term with a real good lease form I had. When it came time for EOG to pay the option they wanted to lower the bonus amount and get a longer term than the extra two year’s the option was for. They refused and I had in my lease they had to give me a release. That’s why an option term means nothing to me.
I am a partial owner of several tracts in Cherokee County. We leased to Key in Jan 2022 for 2 years, with an option for 4 more at the end. In Jan 2024, Key asked to extend the lease another 18 months, due to low price of gas. The extension ends I July. Hopefully, they will exercise the 4 year option.
Thanks for the info, TxAg71!
TX ag71: May I ask where your tracts are located-what abstracts?
Beverly Pool Survey, A-42