I own property in Houston County 6 miles east of Austonia close to Big Creek along Highway 21 . I have been contacted twice in the last 5 weeks about leasing my minerals. EOG resources offered $850.00 per acre 1/4 royalty and Devon offered $700.00 per acre and 1/4 royalty also. The landman representing Devon talked it up about signing with someone who was actually going to drill, saying "EOG doesnt have enough land leased". Devon and Western Chief are the major mineral holders according to the Devon landman. I was told "the best thing I can do is sign with someone who is going to actally produce",therefore getting a royalty check is better than the higher lease bonus amount. Well I am in no rush and will let time take its course.
Joe,
Sounds like you are in a good area. Time is on your side. Maybe a bidding war will take place. Relax. I bet you got a smile on your face. Good luck.
Clint Liles
Both EOG and Devon are big hitters, the real deal. EOG is very aggressive about drilling, does not mess around. See if you can find out who has the bigger land position nearby and is drilling the most, near by. And don't be afraid to holdout for a while.
Joe,
I don't disagree with anything said so far but I offer this simply as another perspective. Obviously, I'd make sure that the all the other terms of the lease(s) are favorable to you and the length of the primary term of the lease(s) is only 2 or 3 years with no extensions. Secondly, I'd check with neighbors to make sure you are getting top dollar. If so, I actually like your situation quite well. If you do not necessarily need (or want) a well right now, I'd consider going ahead and signing for the higher bonus now. If they do drill, you have a quality operator running the show. If it is true that they can't drill you within the primary term of the lease, then you get to play the game again in a couple years. On the other hand, if you definitely need or want a well out of this very lease, perhaps you should wait and research who is most likely to get it drilled within the primary term.
My situation (and my neighbors) was the former...leased it, well was not drilled, lease expired, leased it again (for more per acre), then got it drilled. I guess we sorta got our cake and ate it, too.
GAllen
I don't know for sure but, the discussion in West Texas is that Devon is buying leases to flip and sell to others. EOG is an actual oil drilling company are are drilling in the Eagle Shale area now!
Include a drilling clause in your lease whereby they must drill within the first 12 months or pay you a significant penalty, and the same for the 2nd year. Let the lease terminate after a 3 year primary term if they haven't drilled. The company most likely to drill will agree to the drilling clause. Just an idea.
Ron Hicks said:
Include a drilling clause in your lease whereby they must drill within the first 12 months or pay you a significant penalty, and the same for the 2nd year. Let the lease terminate after a 3 year primary term if they haven't drilled. The company most likely to drill will agree to the drilling clause. Just an idea.
Thank you for the sound advice Ron.
I have quite a bit in Houston but have not been approached for leasing..what I have is two tracts or parcels of land situated in Houston County about 3 1/2 miles south of west from the town of Grapeland...is that leasing now? On my mineral description it says it is part of the J.D.J. Procella League? I have had this for ten years and never any action that I know of...maybe they can't find me. Should I call EOG and ask about whether they want to lease or not? Second tract is part of the C.C. Marsh survey...both are 118.7 acres and same as description of Lucindy Granberry and husband dated 1935 and recorded in book 172 page 324?
Hi my mom just passed and she left me and my brother 4 Wells, I know they where producing cause she use to get checks for them and I know the company Devon wanted to buy them from my mom any idea about how I would, or even should sell them I could use the money as I need to pay for her funeral and I know they offerd her 10k for the right,please any imput on this would help thank you.
Mr. Willmert, My condolences for your loss. If the wells are oil wells I would list them publicly for sale as devons offer may be low. If the wells are primarily gas, you may have to take whatever is offered if you must sell. You could list the interest for sale on the home page of this site for free.