An older relative has been approached about leasing A-759, James Moncure Survey comprised of approximately 1,240 gross acres for which this individual has a rather small percent of the whole.
The initial offer is for four years, with a two-year option, a 3/16 royalty, and a $350 bonus.
What is appropriate leasing terms when the individual is indifferent to this deal or not?
Can you share the name of the company offering the lease? That may help determine how valuable the offer is.
The James Moncure Survey A-759 is located in the far Northwest Area of Houston County, Texas. There are about 3 separate lease brokers attempting to lease in this area. Most likely this is following the Comstock Resources play in Leon, Anderson, Freestone, Cherokee County called the Western Haynesville Shale/Deep Bossier Play. About 2012 lease bonus was about $850/net mineral acre. Three years and a 2-year option & 1/5 royalty, sometimes 1/4. Devon Energy, EOG, and Anadarko were some of the players then. It was not possible to drill horizontal then at the deep depths of the Bossier Sands that were 16,000 to 20,000 ft. approximately. I personally would not even think about leasing that cheap.
I totally agree with you. Looks like they are attempting to lock up a lot of acreage (I think about 60,000 acres from what I was told).
I would think a 3-year deal should be 1/4 royalty, $750 bonus.
Does that sound realistic?
A 3-year primary term, 1/4 “cost free royalty” and no less than $850/net mineral acre. All these companies are probably planning on selling the lease to Comstock Resources, in my opinion.
Drake is the company attempting to lease.
Drake has been attempting to lease in the Northwest Area of Houston County and Anderson County for about the past year from people that I know and have heard. In about 2010 through 2011, a company called PGS did a Multi-Client 3D shoot of about 500 square miles in three separate phases. EOG, Devon, Chesapeake, and Anadarko were rumored to be this group. They continued to lease after this had taken place. About this time the “Shale Plays” became “hot”! Several 20,000 ft. deep Bossier tests were done in Houston County. This was prior to being able to drill horizontal at those depths. But now it’s possible and I figure that deep Bossier horizontal wells will be drilled in this area of Houston County.
Has anyone got an update on this leasing? We were offered $300/ac. The area looks to be pretty dead? Any help is appreciated.
This topic was automatically closed after 90 days. New replies are no longer allowed.