Oil, Gas & Mineral Lease
SN Hall, A-316; AJ Giffis, A-258
JM Hughes A-963: Nicholas Edgar, A-190
424.4 Gross Acres / 35.36666 Net Acres
Angelle & Donohue Oil & Gas
Offering $600 per net mineral acre paid up bonus
3 year primary; 3 year extension option @ $600 per net mineral acre
1/5 royalty > Help?
I have no experience with this & looking for input/help.
I started looking into it and my grandparents had at least 20 other leases they signed.
They do not appear in production. Just found out about those.
I am not familiar with the bonus amounts in that area, but I would never go for a three year extension. Also, if you are new, it would be wise to get a good oil and gas attorney to look over any draft lease as they are rarely in the mineral owner’s favor.
Welcome to the forum. The directories tab above has several qualified TX attorneys.
Offers I’ve seen are $500 for 1/5 cost-free royalty or $650 1/5 RI. You can ask for higher royalty or bonus, but you do need to make sure your lease actually does what you negotiate. Do you own surface? If so, any limitations you want on surface use? If cost-free royalty is negotiated, you need a gross proceeds clause. And so on. Remember the landman is not being paid to represent you, so seek your own legal counsel.
Thank you J Walker. Additionally, I have found a lot of other mineral leases my father and grandfather/grandmother had in Shelby County. They are all deceased and I’m looking for help evaluating them. Can I email them to you for review/consideration?
I can probably look them up online on the county clerk’s website if you will give me your grandparent’s names as given on the leases, and the range of years leased (1930 to 1980) for example.
I am wondering if this is a good deal. Now I have a very small claim (0.74) to be exact. This is a family inheritance totaling 150 acres. Is it worthwhile to have an attorney look at the draft?
Can someone explain what A.M. English Survey A-185 Shelby, TX is as well?
Shelby County A-185/A.M. English Survey…numerous horizontal Haynesville shale wells in the surrounding area…the major operators/producers in the area are Shelby Boswell Operator LLC, Legacy Reserves, Aethon Energy and Northlake Resources
I would guess that Ocotillo is a broker that is going to lease your minerals and then flip them to one of the operator/producers that I named. The $400 bonus money sounds alright but up the royalty percentage to 1/4th/25%. By all means try to get the 25%. The royalty is where the money is. Hopefully it will work to your favor but since you don’t have a large amount of acreage you don’t have much if any bargaining power.
After checking further I find that Ocotillo have been in business for 1 1/2 years and they are definitely not a producer/operator.
Thanks again Clint. I looked up this Eagle O&G, it seems like they are just acquiring leases and just sitting on them. On their website it states that they have 150 wells and 1000+ leases in the East Texas region. I feel like they will sit on my lease and exercise the two-year option and eventually sell my lease later on down the road.
