Mitsui and Expand are battling each other for new acreage, mostly in the southwest quadrant of Anderson County.
I think Mitsui caught Expand by surprise with their aggressive move into Anderson County, via leasing by Vanna Production. Drake Exploration has done a lot of leasing for Expand in Houston County, and has moved into Anderson County, but Vanna’s leasing was well underway by the time Drake got started. Based on lease memos recorded to date, Vanna has leased around 37,000 gross acres in Anderson County, compared to 5,000 for Drake.
Mitsui and Expand are both bringing in additional firms to speed up the leasing process:
BTP Operating began leasing In June on behalf of Expand.
TMH Land also began leasing in June, probably for Mitsui, but not sure right now.
Even two firms that are normally mineral purchasers have begun leasing:
Palm Royalty began recording leases this month, and they are assigning leases to Vanna (Vanna will assign to Mitsui).
Horizon Minerals also has recorded some leases recently, but it is unclear if they are working on behalf of Mitsui or Expand, or if they are working for themselves.
As expected, the competition has increased lease bonus offers. It appears that some mineral owners are being offered more than $1,250 per NMA.
Will be interesting to see this competition plays out in the coming months.
. i just find false or inaccurate information to be unfair to all parties. We can’t make a good informed decision if that information is not accurate. As for your interest, I don’t know if it’s fair or not. terms are typically dictated by competition. if Drake/Expand is the only offer you have or the only company leasing in there, then your options are limited. Are you willing to go unleased just because others are telling you what you should get or what is being paid elsewhere? Not all deals or areas are equal. I signed early on, because I had no other offers and the group I signed on with were the only game in town. Plus, my property hadn’t been leased in probably 30 years, so I took the deal, and i don’t regret it. I was not willing to wait for a bigger offer. what if it never came and I lose out? It’s easy for keyboard cowboys to tell you what you should or shouldn’t do, especially when it’s not their money or interest. Now, if you have multiple offers, or if you hear of competition in your immediate area, then there’s more to discuss. Also, as example, if Expand has the big majority of the area around you leased, but you get another offer from a company with very little presence, the. it may be in your best interest to lease with Expand even if the other offer is more. The goal is to get royalty checks from production, and “block busters” may prevent that. But the way, Exiand could be a block buster too, meaning they are taking leases under an area predominantly leased by another company. Like in my area…TMH is the predominant lease holder…why would inrush leasing to Expand and be cut out if a future well? As you can see, my opinion is not just bonus price based…i want the best chance for a well to be drilled and i receive royalty checks.