Henderson County Lease Offer

Received Lease offer from BROGO. I have mineral rights to 149.5 acres in the Isaac Greeson Survey A-10. No surface rights. First offer was 3 + 2 for 200.00 plus 1/5. Came back 300.00 plus 1/5. Yes they are asking for post production cost. Any comments on Lease or this areas activity?

Thanks Mike


First, comments on activity in your area. The OBENCO horizontal Rodessa activity is at least 10 miles away to the ESE / plus your area is structurally low to where they are drilling (and their results have indicated low = wet wells). You are north of the old Rodessa oil field that is pretty much played out right now. BRG (which may be the mother company of BROGO) has permitted a recompletion on an inactive well about two miles to the north along Turkey Creek.

Basically - things very quiet in your area and you are not in any active trends right now.

Don't know anything about other leasing in your area. But the 1/5 royalty is on the low side IMO - should ask for 25% or at least 22.5%. The money to be made here is in production so the higher the royalty the better. However, if you either need more money up now and/or believe that there won't be much drilling, push for the higher bonus and keep the 20% royalty.

Does your comment on post production costs mean that they are not offering a "no cost" lease? Keep in mind that being on the hook for various production costs can cut your royalty payments by 10 to 20% over the life of any producing well you may end up being part of.

Your block size (assuming you own 100% of the minerals) is a good sized block - this gives you some leverage in negotiations.

Good luck on this effort!

Thank , Rockman

I appreciate all comments. Going back 60 years they have drilled dry holes. This has been in the family since my grant grandfather. I figure the more up front the but you never know.


Mike - I have 100% of 39 gross and net mineral acres in the AB Waldrip Survey, A-819. The nearest producing well is API 21330430, just over 40 acres away. Can you let me know who you're working with at BROGO? They may have some interest in my area as well.


Has anyone hard of any drilling going on in the James Latham Survey area, East of Henderson, in Rusk County (Cotton Valley)? Sabine had previously leased my mineral rights and had gone for the drilling permit and then filed for bankruptcy and my lease expired. It looks like they are starting to pick up drilling again. I see where you are stating go for 25% royalty--what is the going rate int he area for lease per acre?? Cathy

Cathy I see no new activity within a good distance of James Latham Survey/A-16/Rusk County.

Clint Liles

BRG filed completion report for their Turlington well late in 2017. Info is attached. Pretty sure they are tied to the leasing being done by BROGO.

Well results are pretty slim - only completed a 5' interval with IP of 28 BO, 78 MCF and 15 BW per day. This was a re-entry of an old well that had been plugged.

405-BRGTurlington4221330272.pdf (213 KB)