I am personal representative of my father's estate and have received an offer to purchase his mineral rights in Gonzales County, Texas. He holds an interest in 39 acres but as a percentage of a percentage it works out to only about 7.5 acres. His 3 siblings also own the same amount and while I'm sure they or their heirs would sell or lease, I am not sure they have been approached. The offer is for $1500 per acre to buy Dad's 7.5 acres worth. I'm trying to do due diligence with respect to the beneficiaries of the estate to determine if the offer represents fair market value. Thank you for any information.
One way you can find out if the bonus amount is fair is to check with others in the area around yours. Another way is to find out what companies are actually leasing in that area and contact their land office. You can shop around until you find the best offer with the least amount of time and the best % royalty.
just so you know the bonuses in the area of production in that part of the eagle ford are bringing much more than $1500/ac. not sure how it works with a small parcel but why not look at trying to put the family together and leasing the tract especially at par? Also check with your neighbors and see whats going on… they might be able to give you guidance on whats going on.
I’m trying to find that out, it was something he and his siblings inherited from his Aunt probably 25 or 30 years ago - Bessie Kennedy was her name and I believe it was close to the Town of Gonzales. They sold the land many years ago but must have retained some mineral rights. The County assessor needs an address or owner’s name to assist me. Another Aunt is looking for the address for me. With two lines of grandparents coming from that area, I’m guessing we must have a bit of distant relation down there.
Morgan Barnett said:
BHill, I live in southern Gonzales County. Where is you fathers place and I can give you what I hear is going on in that area.
Do not sell your minerals and advise your cousins not to do so either. If they are bent on selling, buy them out yourself.
Gonzales County is in one of the biggest shale plays in the history of the country - the Eagle Ford Shale (see the attached plats). Your 7.5 mineral acres may possibly bring you a substantial amount of income for 40 years or more, and that would just be from that one formation.
Besides, $1500 a net mineral acre is much, much lower than any of the other offers I have heard of people recieving in the play -
A friend of mine is working in Gonzales County, researching records in the courthouse for leasing purposes. He will look up Bessie Kennedy's Will for me tomorrow and send me a copy of it.
Bill, you ought to get an offer at least double that for the minerals. Leases are much higher in the southern 1/3 and eastern 1/3 of the county, but right around the town it is in the 500-800 range since there is no drilling going on there. The closest well to Gonzales is the Graham well about 2 miles south and it looks to be ok, but not great. For what it’s worth.
Thank you for that information. I am not sure if my father inherited or purchased the mineral rights from Bessie. At one time, his mother had mineral interest there also and perhaps these are from her. I believe the family was in that area since 1885. Names that may produce results are Preston Luther Hill (my father), Kate Kennedy Hill (his mother) and Bessie Kennedy (his aunt). I am thinking the land is in the Saturn community, north and east of Gonzales maybe 10 or 12 miles. And thank you for the great maps, lots of good info.
Charles Emery Tooke III said:
BHill -
A friend of mine is working in Gonzales County, researching records in the courthouse for leasing purposes. He will look up Bessie Kennedy's Will for me tomorrow and send me a copy of it.
Thank you for the info. I believe the land is north and east of Gonzales in the Saturn area.
Morgan Barnett said:
Bill, you ought to get an offer at least double that for the minerals. Leases are much higher in the southern 1/3 and eastern 1/3 of the county, but right around the town it is in the 500-800 range since there is no drilling going on there. The closest well to Gonzales is the Graham well about 2 miles south and it looks to be ok, but not great. For what it's worth.
Thanks for the zip file full of maps. While looking at map 3, "Eagle Ford shale thickness map", I noticed a pink colored oval in the northwest region of Gonzales County. Any idea what that is in reference to? In addition, any information you could provide on future leasing / drilling activity along Highway 97 between Nixon and Bebe would be greatly appreciated.
I was looking back in the forum and came across this message with the maps attached. Do you have any current info on the central and Northern parts of Gonzales County area and do you have updates on the maps. Great info and thanks for participating.
Don
Charles Emery Tooke III said:
BHill -
Do not sell your minerals and advise your cousins not to do so either. If they are bent on selling, buy them out yourself.
Gonzales County is in one of the biggest shale plays in the history of the country - the Eagle Ford Shale (see the attached plats). Your 7.5 mineral acres may possibly bring you a substantial amount of income for 40 years or more, and that would just be from that one formation.
Besides, $1500 a net mineral acre is much, much lower than any of the other offers I have heard of people recieving in the play -
Nothing significant happening in North central or northeastern Gonzales County. There were a few leases taken to the northeast of the city of Gonzales but that activity appears to have ended last October.
Sorry, no new maps. Been busy with the pesky little day job to surf the net for such things lately.
Try some of the major company websites. Their publications and quarterly reports - that sort of thing.