Thanks for that very good information. May I ask in which Abstract # you’ve been offered?
I ask because this sounds like the exact same area that Rosewood has been leasing as of late (several more were filed in May, in fact).
Baytex’s June 20 News Release had this info:
BlockquoteThe acquisition materially increases the scale of our Eagle Ford operations. We are adding 162,000 net acres in the crude oil
window of the Eagle Ford, on-trend with Baytex’s non-operated position in the Karnes Trough, and 741 net undrilled locations,
representing an inventory life of 12 to 15 years that immediately competes for capital in our portfolio. The transaction increases
our exposure to premium U.S. Gulf Coast pricing and includes substantial infrastructure in place with low operating and
The rig count lately has been declining, so it’s good to see interest in SW Fayette.
RR, Sorry it took me a bit to respond, our minerals are in A-318, north northwest of Flatonia, I know of one other identical offer to ours in this area. I would be interested to learn if anyone else has received offers from Baytex and has anyone tried to negotiate a higher bonus. I believe Rosewood’s efforts are concentrated east and southeast of town. Is anyone willing to share what Rosewood’s terms are for the leases they have taken?
In July Rosewood filed a couple of more leases for tracts in the Flatonia area (as did ROCC) but the RRC shows that they still haven’t applied for any drilling permits there.
We’ll continue to keep an eye on things. I haven’t talked with anyone who Rosewood has leased, so I really don’t know what they’re offering for bonus, term (3, 5 or 3+2) and royalty. They are putting together a lot of acreage in SW Fayette, however.
In August Baytex Energy filed leases in Abstracts A-240 and A-318, which are NW and W of Flatonia. Maybe one of those was AKGasXplor’s tract(s), as he mentioned.
It’s not in SW Fayette, but Acaval Land Company (which I believe is a group of professional landmen with an office in Schulenburg) filed a whole slew of leases East of Schulenburg, including in Abstracts A-20, A-38, A-77, and A-91, among others. If I’m not mistaken, I believe those may be primarily gas targets, but I really haven’t heard anything in that regard.
Given the large number of leases filed, those could be no or low bonus leases, signed by the mineral owner in the hope that an operator will take an interest and drill a well. I’ll try to make a call or two and find out.
Leasing certainly has been up lately – unfortunately, it’s not reflected (yet) in any new drilling permits being issued for the area.
Acaval (Lavaca spelled backward) was started by some young men from Halletsville/Schulenburg. They were very active here back in 2010 and again in 2014. I signed two leases with them, one for Ross Exploration and one for Tight Rock, which sold it to Sanchez. Sanchez actually built a pad just East of us, then pulled out. I saw where they filed those leases around Schulenburg, but don’t know what the terms are. Just wish they would move west of Schulenburg.
Looks like Acaval filed a bunch of leases between Schulenberg and Weimar, will be interesting to see what happens down here and whether they are speculating or leasing for an operator. Geosouthern took a bunch of new leases on the Fayette/Colorado line between the Colorado river and Weimar. Should be gassy but with some decent liquids in the Austin Chalk in this area.
Welp. I’m just a little SE of Schulenburg and Acaval leased property ON ALL SIDES of me. After speaking to others, they got to a checkerboard pattern and then ‘discontinued leasing’. That’s their words in the SBG office. Those that got leases got real American money on real checks with no problems. So some of us are just SOL. (But I’m not bitter, darn it!)
In a fit of irritation I deleted all of my correspondence about it, but I think it was for $300/ac for 20%, $450/ac for 18%, and $500/ac for 15%. This all happened in the June/July time period and nobody has heard anything since then.
This is far from accurate, but to the best of my knowledge, leasing goes more or less as far NW as US 77 and Vacek Loop, as far south on 77 as the warehouses for oil well core samples, and then off to the NE at least as far as US 90 and the Colorado County line. I won’t mention specific names so draw your own conclusions.
I don’t know much for sure but I sure do hope that they rock themselves out of the mud (remember mud?) and get moving with filling in the lease holes.
I remember mud. Back in the days when it used to rain. I still remember how bad the pastures in Fayette got to looking late last year, but that’s a topic for another board.
Thanks for the detailed info on the Acaval leasing. It sounds like they spent some real money getting those leases, unlike those folks who were offering the no bonus leases. Don’t feel too bad about not getting leased yet. If somebody takes a shine to that area I wouldn’t be surprised if they don’t have to fill in the ‘checkerboard’ in order to put together contiguous tracts for a unit. They made need (or at least want) you then. But I understand your point – it would be have been nice to have banked the cash and not worry about whether anything else ever happened.
I am curious about the interest in that particular area. Has there been any new seismology done lately around there?
To the best of my knowledge, there has been no seismology done since Dawson came through with their thumper trucks and everyone got all excited. So either someone paid to access that data and liked what they saw or else it’s just wildcatting.
As an aside, I was visiting in Midland last weekend and drove by the Dawson yard on I20. It was full of those trucks. When I mentioned it, the comment was made that Dawson has filed for bankruptcy (DYOR).
I would bet Acaval is speculating, since they are using a checkerboard approach. For just a fraction of the cost, they can tie up several sections of land.
I do recall that EOG checkerboard leased this area back in 2017 or so. Any thoughts on whether this could be EOG again or whether or not these are the same leases that they bought back then?
I have no idea. I will reach out to the guys at Acaval and see if they will respond.
Sorry I went MIA… was actively negotiating a lease with Baytex which has been finalized. So, my lease is not one of the ones Baytex just filed, it will probably be part of next month’s filing. I am aware of several other parties that have or are close to signing and as usual, I have heard there are several holdouts. Baytex was offering a tiered approach, which I liked:
3 year paid-up OGML, 2 year option
$700/$350/20%. If you believe Baytex will drill, and that they will make Eagleford well(s), the lower bonus and higher royalty option is a no-brainer IMHO. And that is what I signed for.
Looks like Baytex is moving north and northeast from the Garza, Five Mile Creek and Ring A Units and west of the Mica Unit (which I think Baytex now operates all of them). I am fairly certain we will see drilling permit activity once Baytex has assembled sufficient acreage position. I do not know if the filings will be under a new operator (Baytex) or if they will continue to use ROCC (Ranger/Penn Virginia), which they acquired back in June.
Thanks for that very helpful detailed information. Much obliged.
Good luck. I hope they drill and bring in a good well for you.