I'm getting some real interest from two outfits for our mineral interests in Block 32 Sec 35 - has anyone received any offers in this area and can comment on current terms? I've heard from a friend that recent activity has generated some very high leasing rates. Thanks to Clint Liles here in the forum, we can all see how many drilling permits have been pulled in this area in the past month alone.
What township?
Hello Lee,
Can you confirm if your Howard County Block 32 is T1N, T1S, T2N, or T3N?
Clint Liles
Thank you Clint - it is T3N
T3N
Small world. You and I are neighbors. I've got a fractional interest in west adjacent 34 (HBP with Finley). 35 is wide open. There hasn't been a permit there since 1981.
Three Rivers Acquisition leased in 35 in spring and summer of 2014, 36 month terms. Unless your name is Mary O. Thompson or Moneral LTD, you probably weren't contacted.
There's some prospect-building activity in the neighborhood, but no drillers.
I know someone a few sections over who ended up with $1500 per, 1/4, 3/2 from Finley, but that was back in August and Finley is now in the process of divesting its properties in that part of Howard.
If it were me, I'd want to land around $1750 per.
Lee,
I have no idea about the bonus amount(lease rate) for this area but I will say I would stick with 25% royalty in a lease for this area. There are numerous approved permitted locations just to the west of your Section 35. In Section 31 Horizontal well API 227-38372/oil-gas/completed in 2014/Spraberry(Trend area)formation.
Link to production data on well 38372:
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab...
Link to Completion Report on well 38372 in Section 31:
An older vertical well next door to the east of Section 35 was completed in 1985 into the Canyon formation is still producing 4 to 5 barrels of oil per day. I see numerous older plugged oil wells and some still producing in the area.
BE PATIENT....IN TIME YOU SHOULD SEE SOME GOOD PRODUCTION IN YOUR IMMEDIATE AREA
GIS Map of Howard County A-292/Section 35/Block 32T3N and surrounding area:
CLICK ON MAP TO ENLARGE
Clint Liles
Thanks for the info, neighbor Joe! I will explore for more info and share the results with you and Clint when I know more.
We have also received offers for Sec 35, block 32 T2N. $2800/acre for 3 years, plus 2 year option. Anyone else? Is this too low ?
Hi Don, I also have holdings in T2N and have also been contacted by a few landmen. I'm waiting for a much better offer. I personally won't accept that low of an offer.
Thanks Robert. What are the other offers out there?
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I'm still waiting to see how high they'll go. Clint Liles has advised patience and I'm taking that advice. I've heard of offers of $4000 per nma but no absolute on that.
Thanks Robert. If you hear of any landman offering at those prices, please let me know. I'll do the same.
We have just agreed to sign with a $3000 per nma bonus. I'm not getting any younger and figured I should benefit from this before I die.
my wife was just offered $2,000/nma. It seems low based on what I'm reading, but she only has 2.5 NMA to lease. It also looks as there are wells already producing. How could there be producing wells if we are just now being contacted for a lease? Any advice?
Block 33, T1S, T&P RR Co. Survey, A-362
Section 9: NW/4
Howard County, Texas
thank you,
Aaron,
Hey, neighbor! I've got acreage in SW/4 Sec 9. We've verbally agreed to $5000 per acre (up from their initial offer of $1500, then $2000 per), 1/4, 3/2, and are currently haggling over lease language.
I suspect we're talking to the same guy.
Also, I don't show any active wells in NW/4; they were all P&A in 1981.
thank you for the quick reply. I guess I saw the green dot on the Rail Road Commission website and just though they were producing. I'm not actually living up there, my wife's grandparents lived in Colorado City, TX. (Grantland)