Mineral rights total newby here! Received an offer from Sean Butler, Drake Exploration, LLC for mineral rights I didn’t know I had inherited in Houston County, TX. Got the typical lowball initial offer, but was wondering if anyone has an idea of what the NMA should be for this survey. I don’t see this survey mentioned anywhere on this site so far. I already plan to counter at 22%, rather than accept their 18.75%.
In my research, I see that the Joseph Walling Survey is about 12 miles northwest of Grapeland, TX. Exact reference in an old document is “Joseph Walling Survey 1056, lying about 12 miles N 30 W from Grapeland, TX”. Abstract number is 1070. I also have not been able to find any of the wills or deeds with my family’s names in the online searches of county records or TexFile. So, do I take the landman’s word that he has found the specific documents he says he has? He said he has both. Should I hire someone to find them for me? I’m 1000 miles away, so going to the county myself is not possible.
Last, the offer was verbally stated as coming from Drake, but the actual lease refers to agreement between me and Expand Exploration, LLC in Oklahoma City, OK. Any problem here that any of you have experienced? I know Expand belongs to Chesapeake Energy - correcrt?
The Joseph Walling A-1070 Survey in Houston County is actually about 5 miles west and slightly south of Grapeland. It is 12 miles northwest of Crockett.
Drake has been the primary leasing agent for Expand Exploration. Chesapeake changed their name to Expand last year.
Drake has recorded leases covering 470 acres in the Walling Survey. The survey contains about 646 acres, so they have leased about 73% of the entire survey.
Your minerals are only about a mile east of Expands new $30,000,000 Deep Bossier/Haynesville well! You have a VERY valuable interest. $1,500/NMA 1/4 free cost free Royalty and a 3 year term at the most! You are “in the drivers seat”!
Be patient Lauren. I own minerals in the same survey. You will not get paid until they are ready to drill. This is a unique play. The wells are so expensive and require infrastructure. Expand does not have much competition and has been very good at keeping the lease terms low. That will not last forever.
The Bob Yancy Expand Well is the First deep horizontal well that has ever been drilled in Houston County. Expand has not drilled one of these wells in Leon County that shows on the Texas RRC.
My man, I understand where you’re coming from, but I feel you’re missing the mark. Expand does not play that game, unless your a large interest holder or a large drill site owner. It’s ETX not WTX, and there’s no real competition at the moment in that particular county.
Sit tight. Initial disbursements on the Yancy Well are happening and it is a significant well. As I have stated in previous post, low natural gas prices are the only limiting factor in this play. Given time, the well’s decline curve will dictate the pace of development in the area (or a meaningful increase in natural gas prices). There are many variables and endless permutations (as was just posted by another chat person) for a chat but just be patient and recognize good advice.
I’ll echo the same. Nobody really knows how this area will play out. Prolific, maybe, but there is gas and oil deep down there which requires more exploration and data specifically for Houston and Anderson county. This is currently happening, and as some would say, as quietly as possible but the USGS did just agree with this. The positive momentum, DO and payment for the Yancey well are in process for “dry gas” only but no IP recorded yet. I can only recommend to educate yourself and use this forum as a guide only. It’s geology and timing that equal mailbox money and consider yourself blessed if things work out. Only sell if you really really really need the money is the best recommendation, but don’t sell. All the best.
PGS did a huge 3D seismic shoot of about 514 square miles in about 2011-2012. Over the years there has been many 2D shoots done. The last 2D was about the same time done by Anadarko. So as far as the northwest part and a little to the East of Hwy 19 there is already plenty of Seismic Data in this area. Supposedly now with AI they can enhance the old 2D data somewhat. Also there have there have been 6 to 10 Deep Bossier/Western Haynesville vertical wells drilled that can serve as what some people call “science wells” This area already has that.
UPDATE. I ended up hiring an oil & gas attorney to navigate the process, but I was able to pass on the great recommendations y’all posted. Thanks again.
I leased some mineral rights just a short distance west of there in 2012 to Devon Energy for $850/NMA !/4 and a 3 year lease in the Ramon De La Garza Survey A-88. WHY would you expect a mineral owner to take less today? Are you a landman working for Expand?