Does anyone know about the Tidal Petroleum, Inc.? Is drilling cost of $12 million reasonable for 9800 vertical and 4500 ft horizontal in Gonzales County?
Terry, the number of Frac stages is what will drive Hz well costs. The well cost seems high, but without knowing what they are trying to accomplish, it would not be fair for me to say.
Is there any pooling of property off 1117 just north of Nixon? Have about 71acrs. Does anyone know of recent action off 1117. Many thanks.
Sean
I own 26.8 acres up in the N.E. part of the county, just East of Waelder. I was just sent a lease from AHC Resources out of Lagrange. They are offering 150/ac, 3/16ths royalty, paid up 1 year lease...Has an option to extend for 1 year. This seems awfully low to me.
To Steve with the land east of Waelder. That offer you got is way too low. They are getting 1000 to1500/ ac and 25 percent.
Seth,
We are in the Sarah Smith....Just north of Hwy 90, just east of where 1680 hits 90. We are just north of the Cal Maine chicken farm on county road 430. We are actually on PR 4571...Some maps show that, others don't..
Thanks for the information guys, I have let the landman know that he is way too low....
Seth,
Amarada Hess....That is interesting.....
Even more interesting, the same landman that contacted me, wanting to lease on behalf of AHC, contacted the owner of the property bordering mine. He told that gentleman that he was leasing on behalf of Riley Exploration. Lease and proposal was exactly the same as what he sent me. I believe that Riley is a legit player in the Eagle-Ford Shale, but I could be wrong on that. The proposal was a Producer's 88 lease form, with a weak Pugh clause attached. I read thru the lease and did not like it. I'm currently trying to find a good custom lease with all the bells and whistles that I want.
I found out that AHC is not Hess.....It is a holding company for Riley Exploration.
Riley is wanting to get a small group of leases in my area, to try an experiment. They want to multi-stage frac an Austin Chalk well.
We have declined their offer, even though they were willing to have a lease with a depth severance, below the Chalk.
If they are just trying to lease the shallower rights, its not such a bad offer and it definitely doesn't look like a 'buy-and-flip' strategy. It really doesn't diminish the value of your Eagle Ford rights if you lease the shallow rights. A few people have already tried to multi-stage frac the Chalk without much success. Good luck to them on their 'experiment'! Where did you get your information on their plans?
I got the information direct from Riley Exploration. Couple of reasons we did not go forward with this:
1. Lease terms were not competitive, in my opinion.
2. While the lease would not cover any depths below the Chalk, the problem I see would be the fact that courthouse records would indicate my land was under lease. Granted, the lease itself would show a depth severance, but companies almost never file the actual lease of record anymore. They tend to file "Memorandum of Lease". These documents do not show very much info, and would not indicate there was a depth severance.
3. Given that, if an oil company came along next year and wanted to do an Eagle Ford well, A cursory lease check in the records would indicate we were leased, and they would go on to the next area....skipping us.
That's how my neighbors and I viewed it, anyway.
Time will tell.
You can require the depth severance be referenced specifically in the memorandum.
Mr. Danelius, If there is no confidentiality clause in your lease, you could record the lease yourself, a neat solution I learned from Buddy Cotten.
R.W. and Ben,
Good information to know...Thanks for that. Did not think of it.
Also, had a message on my phone last night, believe it might be a seismic company. Have no idea what to expect from that.
Anyone have any experience dealing with seismic on your property ??
I have had seismic done on my property in south Gonzales county and the biggest problem I had with them is they left Hugh ruts in my property from their heavy equipment. I did finally get them to fix it all a year later and they even crushed a culvert. That was the biggest choir to get them to fix.
I have mineral interest near Bebe and also In the township of Gonzales, I have offers on both but I need to know what is being paid per acre and royalty interests in both areas. The offers seem low. I would appreciate any information anyone has.
Would you mind telling us what your offers are, and who is doing the offering ?
Forest is offering $500 and a 25% on the Bebe minerals. The offer for my interest in the town of Gonzales is $200 and 20% from the same group that leased the city owned minerals.
The royalty on your Bebe acreage is ok, but the bonus offer seems low to me, based on what I am hearing around the area. Both the bonus and royalty seem low to me, on the town acreage. Just my opinion...
Hopefully, others will comment and give you more perspective.
There is a drill rig at the corner of Hwy80 and FM 1117, just north of Nixon. Does anyone know if leasing of property up FM117 will happen, by who or when? I own property about 5 miles from this intersection.