What information can any of you offer as to leasing, mineral sales, seismic activity, and well production information currently going on in the county?
I hope that all of you are doing well. Roxanna plans on calling you sometime this weekend to ask if you know how much land in leasing for in Gonzales County. We have two tracts of land. One is already leased and the other is in the process of being leased. Magnum Hunter has offered $1,500 per acre and 22.5% of the royalties. This probably is a little low but I wanted to check with you. It is located on FM 532 going towards Moulton and there is activity in the area. I gave Roxanna your number listed in the phone directory but she was unable to reach you at the number. Is this the best one? Tell Jill, Brittany and Emily, "Hello". Thanks Morgan and have a great day!
Hey Tony, I spoke with Roxanna a while back and things have definitely gotten more interesting since then. I hope everything is well with you and I will tell the girls you said hello. Tell Roxanna to call me at, my cell #. I am going to a town hall meeting put on by Drillinginfo.com tomorrow at the Lutheran Church from 9-4. Maybe they will shine some light on a few new things I have not seen or read about yet. Your offer listed is pretty good, but might could be a little better. See you later.
Thanks Morgan. I’ll give Roxanna your cell number and she will try to contact you this weekend. It will be interesting to hear what information you have. Thanks again!
Morgan Barnett said:
Good Morning. Roxanna tried calling you Saturday and left a message on your cell phone. I then tried Monday and left a message also. We never heard back and we were both wondering do we have the correct number. Roxanna was thinking about attending the meeting last Saturday but she did not know exactly where it was going to be at. We are supposed to sign paperwork soon and wanted to get some feedback from you. Thanks and have a great day!
tony b. said:
Thanks Morgan. I'll give Roxanna your cell number and she will try to contact you this weekend. It will be interesting to hear what information you have. Thanks again!
Morgan Barnett said:
Hey Tony, you have the right number, but I didn’t see a missed call, AT&T at it’s best. The biggest question I have is how far is you place form the Penn/Va wells over on the Hawn Holt Ranch and the Munson Ranch. Also, Forrest is drilling a well on Michael Floyd right on Peach Creek. How far are you from that one? That will give some clue to possible production under your property. I read yesterday, there is a new way to lease that you might want to explore. It is called Farming Out. Instead of a paid up lease bonus system and a royalty of 22-25%, these guys are waving the lease bonus and getting a 45-50% royalty. Definitely something to consider. If not, I would think a bonus of somewhere in the 1400-1700 per acre and 22-25% royalty is in order where I remember your place being. Definitely only sign up for a 3 year deal with no extension. Also make sure you bear no cost in the production of the oil. If you want someone to look it over and you don’t have someone in mind, Sue Ortmann is very good in Gonzales. Let me know what you think.
Thanks Morgan for the information. Our property borders th Hawn Holt Ranch and we are already leased with Penn Virginia on that piece of property. The other piece of property is located in the Nickel area on FM 532 and there is oil activity in that area also. That is the property we are in the process of leasing. It is 100 acres in size. I'm not sure about the "farming out" but I do like the idea about not extending the lease beyond 3 years. We will check into that. Once again, they are offering $1500 per acre and 22.5% royalties. So this sounds pretty much in line with what you are saying. Thanks for all the suggestions and for taking the time to respond to our questions. I'm not sure what the deal is with the phone. We both left messages. Oh well! Have a great day and weekend Morgan!