I was offered the following lease agreement from Mamba Minerals for my 60 acres of mineral rights I own in La Salle County, TX. This property has been in my family since 1946, and I want to make the best deal possible. Is this a standard, or competitive offer? I understand that there is a lot of drilling activity going on in the area of La Salle County. Should I make sure to get at least three bids before signing a lease with anyone?
"The lease offer is $350/ per acre for a 3 year lease with a 1/6 Royalty interest with the option to extend for an additional 2 years at the end of the lease for an additional $350/acre"
This sounds like a very lowball bonus and royalty offer to me. I think it would be better to lease to one of the well known companies drilling in the area. Mamba Minerals sounds like someone who seeks to make a handsome profit from taking the lease and then assigning it to someone else. I would personally never agree to an extension of the lease. If they don't drill in 3 years, who knows what the bonus rate will be after production is established in the area.
I can personally recommend Buddy Cotten, a professional landman, on this forum to assist you. I have read that some leases in LaSalle County are going for thousands of dollars an acre, depending upon the size of the tracts and where they are located. The lease itself is very important and not something you want the oil company to write for you since it is not for your benefit. You should seek professional help to make the best deal possible. Mr. Cotten will negotiate for mineral owners and has lease forms that protect the mineral owners. I have been very pleased with his advice and found his fees to be reasonable.
Thank you very much for your feedback. i felt that Mamba Minerals has been very eager to have me sign their offer. I would love to contact Mr. Cotten, can you please provide me his contact information?
Thank you very much for the feedback. My brother contacted Buddy Cotton today, and was very impressed. We decided to use his services, and we're very confident.
Grareful
Bwanablue said:
Verygood area offsetting EOG-Hindes lease. The Mamba offer is way too low. Get representation by an O&G attorney or a well-qualified landman.
Thank you very much for the feedback. My brother contacted Buddy Cotton today, and was very impressed. We decided to use his services, and we're very confident.
Grareful
Bwanablue said:
Verygood area offsetting EOG-Hindes lease. The Mamba offer is way too low. Get representation by an O&G attorney or a well-qualified landman.
We received an offer for 20 ac near Gardendale in LaSalle Co for $2000/ac bonus plus 25% royalty for 3 year lease in the condensate zone of the Eagleford. Not sure if this is high or low at this writing. I understand bonuses are ranging from $1k to $6k or higher in this area. Anybody have feedback?
We received an offer for 20 ac near Gardendale in LaSalle Co for $2000/ac bonus plus 25% royalty for 3 year lease in the condensate zone of the Eagleford. Not sure if this is high or low at this writing. I understand bonuses are ranging from $1k to $6k or higher in this area. Anybody have feedback?
I’m not sure of the abstract #. The deed only shows the tract # and survey # in the county: 20 acres, tract #32, Gardendale Colony Lands, Survey # 66, LaSalle Co TX. I’ve tried to locate the precise location of the land, and I’m having a difficult time finding the correct maps to do so from out of state. Not many online resources… it could possibly be survey #66, abstract # 2831098.
enter abstract 1098 and select LaSalle from the drop-down county list.
click on search.
click on "map"
zoom out.
Looks like a pretty good area with Chesapeake and El Paso leases right next door.
mineral owner said:
I'm not sure of the abstract #. The deed only shows the tract # and survey # in the county: 20 acres, tract #32, Gardendale Colony Lands, Survey # 66, LaSalle Co TX. I've tried to locate the precise location of the land, and I'm having a difficult time finding the correct maps to do so from out of state. Not many online resources.... it could possibly be survey #66, abstract # 2831098.
I'm not sure of the abstract #. The deed only shows the tract # and survey # in the county: 20 acres, tract #32, Gardendale Colony Lands, Survey # 66, LaSalle Co TX. I've tried to locate the precise location of the land, and I'm having a difficult time finding the correct maps to do so from out of state. Not many online resources.... it could possibly be survey #66, abstract # 2831098.
Bwanablue is correct: It is Abstract 1098, I&GN RR Co Survey 66 (also known as gardendale colony lands survey 66). If you'd like a copy of the plat, I can scan one and email it to you.
mineral owner said:
I'm not sure of the abstract #. The deed only shows the tract # and survey # in the county: 20 acres, tract #32, Gardendale Colony Lands, Survey # 66, LaSalle Co TX. I've tried to locate the precise location of the land, and I'm having a difficult time finding the correct maps to do so from out of state. Not many online resources.... it could possibly be survey #66, abstract # 2831098.
Brandon, that would be a big help. I’ll send you a private message with my email address. Any idea what the current bonus/acre is in this area? Thank you!
I don’t know current offers as I’m not on that side of the landman work. I do know that there is still open acreage receiving in upwards of 3000 per net min acre. Depends on areas of interest.
mineral owner said:
Brandon, that would be a big help. I’ll send you a private message with my email address. Any idea what the current bonus/acre is in this area? Thank you!
I needed to take a moment to express my gratitude to you for referring me to the landman, Buddy Cotten. What he was able to negotiate for my family still boggles the mind. I am not overstating it when I say that he is a true genius with regards to mineral rights negotiation. I can’t thank you enough for the time you took to recommend him to us. My family has been truly blessed to have him in our lives, and I have you to thank.
6th Generation Texan said:
This sounds like a very lowball bonus and royalty offer to me. I think it would be better to lease to one of the well known companies drilling in the area. Mamba Minerals sounds like someone who seeks to make a handsome profit from taking the lease and then assigning it to someone else. I would personally never agree to an extension of the lease. If they don’t drill in 3 years, who knows what the bonus rate will be after production is established in the area.
I can personally recommend Buddy Cotten, a professional landman, on this forum to assist you. I have read that some leases in LaSalle County are going for thousands of dollars an acre, depending upon the size of the tracts and where they are located. The lease itself is very important and not something you want the oil company to write for you since it is not for your benefit. You should seek professional help to make the best deal possible. Mr. Cotten will negotiate for mineral owners and has lease forms that protect the mineral owners. I have been very pleased with his advice and found his fees to be reasonable.
Brett, you are so welcome and I am happy to hear that his expertise exceeded your expectations! You are in excellent hands and Buddy is someone you can count on down the road. Thanks for letting me know the outcome. I hope you get pooled in a great producing unit!
Brett Radcliffe said:
I needed to take a moment to express my gratitude to you for referring me to the landman, Buddy Cotten. What he was able to negotiate for my family still boggles the mind. I am not overstating it when I say that he is a true genius with regards to mineral rights negotiation. I can't thank you enough for the time you took to recommend him to us. My family has been truly blessed to have him in our lives, and I have you to thank.
6th Generation Texan said:
This sounds like a very lowball bonus and royalty offer to me. I think it would be better to lease to one of the well known companies drilling in the area. Mamba Minerals sounds like someone who seeks to make a handsome profit from taking the lease and then assigning it to someone else. I would personally never agree to an extension of the lease. If they don't drill in 3 years, who knows what the bonus rate will be after production is established in the area.
I can personally recommend Buddy Cotten, a professional landman, on this forum to assist you. I have read that some leases in LaSalle County are going for thousands of dollars an acre, depending upon the size of the tracts and where they are located. The lease itself is very important and not something you want the oil company to write for you since it is not for your benefit. You should seek professional help to make the best deal possible. Mr. Cotten will negotiate for mineral owners and has lease forms that protect the mineral owners. I have been very pleased with his advice and found his fees to be reasonable.
hello…I would love to have contact information on Mr. Cotton…we are considering leasing a significant parcel of land , 16000 acres…and need to talk to someone who understands What is happening in Lasalle County…around the Encinal vicinity…any help welcome