We have mineral rights to property in East Texas over the Haynesville shale and recently received a "PAID UP OIL AND GAS LEASE" form from NFR EAST TEXAS BASIN LLC. With the lease was a customer draft for $200 that is supposed to be a signing bonus for the 3 year term of the lease.
The terms of the lease state that the royalty shall be one-sixth of production. Our mineral rights cover 1.189 acres.
This is new to us so we are looking for info on whether this is a reasonable offer or if there is some way to go about determining an appropriate market value for what NFR is requesting to lease from us.
Is there anyone else in this area working with NFR?
In Shelby County, I negotiated for my client a bit over $1,000 per acre and in San Augustine County, a bit over $3200 per acre, both 1/4 royalty. Both in January, 2010. In lower Sabine County, $200 PAB and 1/5th royalty, January 2010.
Yo, Buddy! How are 'ya? Belated, Happy New Year. Let’s hope 2010 has our lessee(s) in Orange County renewed with enthusiasum to drill, drill, and drill more. Might you have any insight as to recent bonus/rental in Jasper-Newton Chalk area? Also, any hearsay of Eagleford/Woodbine moving eastward from Polk-Tyler toward Jasper-Newton? See you at NAPE? Thanks, Rocky
Buddy Cotten said:
Dear Mr. Hill,
Seems a bit modest to me.
In Shelby County, I negotiated for my client a bit over $1,000 per acre and in San Augustine County, a bit over $3200 per acre, both 1/4 royalty. Both in January, 2010. In lower Sabine County, $200 PAB and 1/5th royalty, January 2010.
I don’t know what Swift is paying up in the northern part of the county. They are frugal, anyway. In southern Jasper/Newton, 250 - 300 buys most everything.
I just wish I had 2000 acres in Jefferson Cty right now.
Rocky Arrell said:
Yo, Buddy! How are 'ya? Belated, Happy New Year. Let’s hope 2010 has our lessee(s) in Orange County renewed with enthusiasum to drill, drill, and drill more. Might you have any insight as to recent bonus/rental in Jasper-Newton Chalk area? Also, any hearsay of Eagleford/Woodbine moving eastward from Polk-Tyler toward Jasper-Newton? See you at NAPE? Thanks, Rocky
Buddy Cotten said:
Dear Mr. Hill,
Seems a bit modest to me.
In Shelby County, I negotiated for my client a bit over $1,000 per acre and in San Augustine County, a bit over $3200 per acre, both 1/4 royalty. Both in January, 2010. In lower Sabine County, $200 PAB and 1/5th royalty, January 2010.
I really appreciate the insight. That is good info to know. We’re in Rusk County, and I haven’t found anyone yet who knows what the going rate is here.
Does anyone know if there are any key variables in determining what goes for $200 an acre and what goes for $30,000 and acre?
Buddy Cotten said:
Dear Mr. Hill,
Seems a bit modest to me.
In Shelby County, I negotiated for my client a bit over $1,000 per acre and in San Augustine County, a bit over $3200 per acre, both 1/4 royalty. Both in January, 2010. In lower Sabine County, $200 PAB and 1/5th royalty, January 2010.
Received an offer in East Texas on a Gas well which went into production last year on property beside the property my mother has mineral rights on.
Offer: PAID UP OIL AND GAS LEASE for Jesse Walling Survey from EOG Resources. for $300 area bonus 3/16 Royalties.
Lease No 248238 Well No 1 in Martinsiville (Travis Peak). From RRC records I believe they drilled to the cotton formation. 2009 Production records with RRC =220590MCF is producing and is located beside my mother mineral rights property. I believe Martinsiville Travis Peak is a new project .
Looking at EOG Resources activity in the past with this area they drill around 10 wells in an area and start pumping.
They all so just finished another well Lease Name A. L. Johnsonabout 1 mile from the property my mother has minerial rights on. 9miles NE of Nacogdoches
We would like to find out if this is a good lease $300 per Acea with 3/16 royalties or should we try for more?
In Shelby County, I negotiated for my client a bit over $1,000 per acre and in San Augustine County, a bit over $3200 per acre, both 1/4 royalty. Both in January, 2010. In lower Sabine County, $200 PAB and 1/5th royalty, January 2010.
I have recently been offered $25 an acre withh 1/6 royalty for oil, gas, and mineral rights in Thrall, TX, Williamson county. Does this seem to be the going rate?
suzi bird said:
Buddy Cotten said:
Dear Mr. Hill,
Seems a bit modest to me.
In Shelby County, I negotiated for my client a bit over $1,000 per acre and in San Augustine County, a bit over $3200 per acre, both 1/4 royalty. Both in January, 2010. In lower Sabine County, $200 PAB and 1/5th royalty, January 2010.