Oil & gas discussion group for those interested in Howard County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Can anyone tell me what oil & gas leases in Howard County are going for now? I leased to a company three years ago and they want to renew at the same rate but I am thinking it might be low. I have 20 acres and the old term was $200/acre and 1/5 interest. Thanks!
I don’t know about currently, but we leased three years ago at $250 and 1/5.
Thanks, Donna.
Hi.
You probably should include the description. Probably too late. I just looked at this site for the first time in a while.
Thanks, Bruce. I’ll remember that in the future. I ended up getting $350/acre.
Well, not too bad. I had 10nma and got 400, .25, 3 years. It’s south of I-20 and a little east of Big Spring. 10 nma doesn’t give you much room to bargain.
BTA Oil Producers out of Midland. Has anyone heard of them? Recommend/Not Recommend?
Thanks for any help.
BTA…good folks. Been in the business for a really long time. independent oil producers.
This came from Ralpr in anther group.
http://www.4-traders.com/ANTARES-ENERGY-LIMITED-6492493/news/Antare…
I could use some help. I own around 760 acres of land and the mineral rights in Howard county and I was wondering about details for a lease. Does anyone know how much money each acre is going for these days? Any help would be greatly appreciated. Thanks.
I’ve heard anywhere between $300-$1,000 an acre @22-25% royalty. Quite a range there but as we get deeper into the year i think there will be some O/G consolidations and more activity. I don’t have anything to prove that… it’s just a feeling about the area.
Max Penn… I don’t know. it depends on how your lease defines drilling or commencement of operations. in the old days starting a road was good enough to hold a lease. check your lease and maybe a good oil/gas lawyer because i know enough to get me in trouble. some people on this site have been very helpful
Thanks jack for responding so promptly. I have another question for you. We currently own a lease and the royalty is at 21%. They haven’t started drilling yet and the lease ends in September. We tried negotiating and their best offer is 600 per acre with a 21% royalty and they said you should take it cause were going to start drilling anyways before the lease ends. Now I heard many people are getting 25% royalty and that 4% is a drastic difference. Once they start drilling and the lease ends, is that their lease still, as in we’re stuck at that 21% royalty?
Jack is correct.Most leases have continuos operations clauses, delay rentals, and other clauses that can extend the lease past the primary term. Read carefully.
Does anyone have any knowledge regarding caliche?
Yeah I think so, but apparently it can be worth money, just not sure how or why.
Caliche… sorry light clay-like dirt. i thought it was dark from my experience living in san antonio.
Caliche… isn’t that a dark clay-like dirt?
jhh
Caliche is a major component of building roads and locations; it makes a great base and can be found a few feet under the top soil with very deep pockets. Not sure what the going price is today.