My siblings and I were notified a few weeks ago that we were heirs to 100+ acres of mineral rights and this landman said he would like to send us lease agreements. When we received the lease it stated a $25 flat fee bonus and 1/6 royalties. I don’t know if there are already producing wells in that area. I feel like I need to know more about the area to determine if that amount sounds fair. From the amount of research I’ve done so far it seems like $100-$200 an acre is the going rate.
The area is in Wood County, Texas. Manuel Y Barbo survey, Abstract 657.
Is there anyone that can give me information on that area or lead me to public records of some sort?
Your acreage is near the Coke field. The bonus at a flat fee of $25.00 would mean that you have a minuscule mineral interest. The 1/6th royalty is too small—no doubt.
Thank you, I suppose I will need to find out how much mineral interest I have.
Your acreage is near the Coke field. The bonus at a flat fee of $25.00 would mean that you have a minuscule mineral interest. The 1/6th royalty is too small—no doubt.
The red are gas wells and green are oil wells. The green with a green stick through them are plugged oil wells.
The blue circles are approved wells that were possibly never drilled. Blue circles with 4 blue sticks are dry holes. Red with a red stick going through it is a plugged gas well.
The Coke field is primarily composed of older production and Petro-Hunt is the main operator. Several scattered wells also exist in the area which is operated by local operators in the Wood County area. This area lies on the north edge of the Quiman Field to the north and west of the Winnsboro Field to the northwest. It should be noted that this information was conditions back in 2008. Since that time, I am sure several additional wells have been drilled but again, mainly older production most likely makes up the majority of the area. I agree with Buddy Cotten in that the lease terms are on the very low side and you should contact Petro-Hunt (they have a field office in Coke) for possibly further info on exactly the activity in your area. Be sure to provide an accurate description of your location.
