Land Rush in Borden County, TX - Royalty Rates

Oil and Gas Leasing Help
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I was in the Borden County Courthouse yesterday checking our deed records and there were 5 landmen there doing their research. One of the clerks said it's been like this for months; apparently the leasing activity is at a fever pitch there. Most of the recordings are just memorandums of leases, but there are a few actual lease documents on record. Bonus money has been redacted, but lease terms are running 2-3 years and owner's royalty share is 1/5 to 1/4.

2

Thanks for the update. It would be interesting to see new production under some of these areas which have already produced for decades.

3

Thanks for posting, I hear this area could be on the edge of the next big play.

Keep us posted.

4

FYI we have not had a lease in Borden County since1997 and in March of this year we leased out 15,141 acs in which our group has 5/64 interest in this area. the lease price was $300 , 3 year 1/4 with a two year option. Area is SE of Gail aound 12 miles.

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Thanks for the info, Richard. Our land is NE of Gail, closer to 20 miles out. Our leasing history is similar to yours, last lease in the late 90s. So far our bonus offers are far below yours, same term, split, and option period. There is lots of old oil in the area, not a lot of drilling recently, but with all the leasing, I look for drilling to pick up soon. I know several neighbors have leased for $100 per acre, but that sure seems low. Wish we could get some interest from an intergated investor with a drilling component. The bonus would be nice, but I’d like to see some drilling activity, not just speculators trying to make a buck on the spread.

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The Baron said:

Thanks for posting, I hear this area could be on the edge of the next big play.

Keep us posted.

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Linda Daugherty Stevens said:

Thanks for the info, Richard. Our land is NE of Gail, closer to 20 miles out. Our leasing history is similar to yours, last lease in the late 90s. So far our bonus offers are far below yours, same term, split, and option period. There is lots of old oil in the area, not a lot of drilling recently, but with all the leasing, I look for drilling to pick up soon. I know several neighbors have leased for $100 per acre, but that sure seems low. Wish we could get some interest from an intergated investor with a drilling component. The bonus would be nice, but I'd like to see some drilling activity, not just speculators trying to make a buck on the spread.
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;Linda the land company we leased with was working for Chesepeake. Chesepeake filed for a drilling permit in the last thirty days in an area about 8 miles NE of us. You might calll Chesepeak in OKC about leasing your area.
Our group really did not want the option but after talking together, land not being leased in a while, we decided since this was a major player and with that much acreage it was fare to let them have the five years for a drilling program if they will start one. Figure they will start since they got all the minerals owners to sign which was about a 4.5 million dollar investment unless they sell the project to another large company.
Linda Daugherty Stevens said:

Thanks for the info, Richard. Our land is NE of Gail, closer to 20 miles out. Our leasing history is similar to yours, last lease in the late 90s. So far our bonus offers are far below yours, same term, split, and option period. There is lots of old oil in the area, not a lot of drilling recently, but with all the leasing, I look for drilling to pick up soon. I know several neighbors have leased for $100 per acre, but that sure seems low. Wish we could get some interest from an intergated investor with a drilling component. The bonus would be nice, but I'd like to see some drilling activity, not just speculators trying to make a buck on the spread.
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Linda Daugherty Stevens said:

I hope so, it would be nice to see some good production.

The Baron said:

Thanks for posting, I hear this area could be on the edge of the next big play.

Keep us posted.