Karnes County, TX Eagle Ford Shale

I just wanted to give some information about the status of our situation in the Eagle Ford Shale because it seems that a lot of people are not getting good first hand information. We have about 310 acres in Karnes with full mineral and surface rights. We met with the oil company at the beginning of this week on the property to look at where they were planning to put the drilling platform. As we understand it, they are going to put up one pad with two seperate wells. The wells are going to be in a 300 acre section that will encompass about 3 or 4 different land owners. This particular well will only count for about 30-40% of our land. The landman that we talked to said that the rest of our land will be drilled according to the soonest lease that will expire in the section. Talking to the neighbor in our section it seems that this will occur before December or maybe even sooner.

The original two wells that they are drilling now are expected to be done and producing royalty checks around November. The landmen out there are running around with their heads cut off trying to get as much drilled as they can. He said they had 26 wells that had to be drilled before November. It is an exciting time for everyone in the Eagle Ford Shale. It seems that the wait is over. I will keep ya'll posted on any other updates such as production rates, drilling depths, or any other information that I may receive.

Hi Al! Thanks for your quick response to my wife’s question about laying a gas pipeline across her property in Karnes County. Her property will have one platform on it and two wells will be drilled. Drilling is expected to begin in October or before. These wells are among the first 2-3 to be drilled in Karnes County according to the E/P production company’s operations manager. Do you have any ideaabout how much per acre people are getting in Karnes County to lease their property for drilling purposes, and what percentage on the royalties? My wife’s lease expires next July at the end of the 3rd year, and she only received a fraction of what some people are now getting for their leases. Thanks again for your help Al. Regards, David Green.

I talked to a neighbor the other day who said he received $10,000 an acre to release about 70 acres or so. I know that people resigning around Karnes are also getting 25% royalty.