Has anyone recently leased to BP in San Augustine Co? Just wondering if my terms are the going rate.
$300/nma and 1/5th royalty
Gotmineral there have been 21 approved permits for San Augustine County since the 1st day of January 2018. Lots of gas wells being drilled into the Haynesville Shale formation. This link will let you view the approved permits for wells for San Augustine County.
Click on LEASE NAME to view permit:21 approved permits/3 pages
If you will share your legal description(Section, Block or Abstract #) I will check the GIS map for any activity or production in the area.
I would say the $300 is about right but I have been told the royalty in these East Texas wells is going for 22 1/2%. You need a no deduction clause in these gas leases if possible or they will take away a good part of your royalty check in the processing, transporting, gathering, treating, dehydrating and marketing of the natural gas.
Clint Liles
Clint,
Thank for all the great information!
The minerals are actually on the Nac/San Aug county line in Nacogdoches County in the McGowen A386.
Gotmineral....some very good Haynesville shale wells in the surrounding area including well 405-30361 in A-386......also some good James Lime wells with lots of condensate in the area.
GIS Map of San Augustine County A-386 and surrounding area:
CLICK ON MAP TO ENLARGE
Link to production data for well 30361/lease # 260892:
http://webapps2.rrc.texas.gov/EWA/specificLeaseQueryAction.do?tab=i...
Manipulate begin production date back to November 2010 to view all production on this well.
Clint Liles
Minerals are in A-386 in Nacogdoches County, but very close to the San Augustine County line
Sorry about that...I wasn't paying attention to the right County.......................
The GIS Map shows the nearest production to be about 3 miles due North.....some fantastic Haynesville Shale wells in that area. This link is to production data on well 33209/lease # 263723....manipulate the begin production date back to July 2011 to view all production on this well.
GIS Map of Nacogdoches County A-386 and surrounding area:
CLICK ON MAP TO ENLARGE
Clint Liles
Recently received an offer from BP in San Augustine as well. $275/nma (initially) but possibly $400 and 3/16th royalty, 5 year term. Completely new at this so trying to find any help/advice available.
Hi there - Recently received offer from BP in San Augustine County… $300/nma plus 3/16ths royalty, 5 year term. 3/16ths seems a tad low?? Is there a “going rate” for this area? Thanks!
Hello Clint - Oct 2018 - Just received an offer from BP in San Augustine County for $300/nma plus 3/16th royalty (18.75%). Do you have an idea what the going rate is currently? I know it was higher earlier this year. Thanks!
swampgal…
I would ask for $500 and at least 25% royalty…The norm for Texas is now 20%, 22.5% and 25%…try for 25% and $500 and as Buddy Cotten says…NEGOTIATE…The first offer is generally a lowball offer. Good luck with your minerals. BP and a couple of other producers are drilling some very good Haynesville Shale gas well in St. Augustine County. If you will share your Section, Block and/or Abstract number I will see if there is any production or activity in your area.
Clint Liles
Hello swampgal… Is this by chance the same Survey your offer from BP refers to?
xxx.xxx net mineral acres out of 262.7162 acres in the I.&G.N.R.R. Survey, also known as the S.W. Blount Survey, A-341, San Augustine County, Texas.
Hi mineral heir. Yes it is the within the same I&GNRR Survey, A-341, San Augustine County, TX. The only difference is that my nma rights are out 198.3162 acres instead of 262.7162 acres.
swampgal… I’d stick with what Clint said…aim high for some wiggle room. I’m aware of a negotiation that stands at $400, 1/5th (20%) + 5yrs in that particular survey, so please let me know if you have better luck so we can both have something to lean on. Also and quite importantly, insure they add a “non post-production costs” clause in your lease agreement. Do a quick search on “post-production costs” for a little extra ammo. Good luck! (and stay in touch)
Carolyn,
BP has a horizontal well(API 405-30660) they spud(begin drilling) on August 05, 2018 that begins in Section 12 and ends in A-341…this is in the very east part of A-341. Apparently after drilling this well they liked what they saw and are now leasing more acreage to drill more wells. I don’t think they have completed this well.
The targeted formation is the Haynesville shale(gas).
Link to approved permit for well 405-30660…
Sorry I was so late getting back to you…the rain finally stopped and i was doing some electrical work on my crane and winch.
GIS map of San Augustine County A-341:
CLICK ON MAP TO ENLARGE
This link is to Completion Report on a well in the area drilled by Aethon Energy Operating…21,541,000 cubic feet gas per day…good dry Haynesville Shale gas well…
I find that there are 3 operators drilling in your area: XTO(a Division of Exxon), BP America and Aethon Energy Operating.
This link is to all approved permits for San Augustine County from January 01, 2018 through October 18, 2018::::Click on LEASE NAME to view permit
Clint Liles
My family owns 1/2 the minerals in 100.5 acres in the M.G. Whitaker Survey A-591, and Hiram Richey Survey A-463, Nacogdoches County, Texas. We are interested in leasing our minerals and curious if there is activity in the area. We were contacted previously about leasing but could not reach an agreement. Thanks for any information you can provide.
Trey Huston.
At this time I see no activity in this area of Nacogdoches County. I find in the past that Marathon, Halliburton, and Pinnacle Operating Co., Inc have drilled in this area. The producing formations in this area seem to be James Lime, Travis Peak and Pettit Lime. These are all gas wells. This link is production data on one of the wells in the area.
GIS Map of Nacogdoches County A-591/A-463 and surrounding area:
DOUBLE CLICK TO ENLARGE MAP
Clint Liles
Are you talking about San Augustine County, Texas or St. Augustine County, Texas? These are two different counties.