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.
You have no clue what you’re talking about. i own over 200 acres in the middle of the play, and i can guarantee TMH is not leasing for Expand. I leased to TMH, and then Expand called me wanting to lease me about 2 weeks later. I also know, for a fact, that TMH and Expand have competed for other leases, closer to the river. So either Expand is just very unorganized, or you are wrong (which i know to be the case). I find it dangerous, as well as unfair to both other mineral owners and the companies, to be spreading false information. The same applies to the Vanna/Mitsui thing. False “intel” is unfair, but y’all seem to be “in the know”, but you really aren’t.
The leasing situation involving Vanna Production is unclear at the moment. They claim to be leasing now on their own and shopping for a buyer, but they have a 25% working interest deal with Mitsui associated with their sale of 46,500 net acres in Freestone and Leon Counties in the summer of 2024. In addition, in June 2025, Vanna did a surface lease in the EC Harris Survey in Anderson County for the construction and operation of a gas treatment plant. Seems odd that they would do that if they don’t have a buyer lined up. However, anything is possible.
I’m not sure why Ltaylor 12 thought TMH was leasing for Expand. TMH assigned their leases to Vanna in a document filed in Anderson County on August 12.
OK, so we were offered $350/NMA y Drake/Chesapeak, way less than 1250. We are just south of Anderson county, in Houston county. This was this past Friday, and they said they would not come on our land, which I’m sure I need to get in writing. We haven’t given them an answer. Any thoughts?
It seems that some of the major companies will hire any type of lease broker and have no idea how bad the way their brokers and landmen are dealing with mineral and land owners. And they don’t seem to care!
i’m kind . 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.
OK, thank you very much! That sounds like the convo my husband & i had, don’t want to get ripped off, but don’t want to get zero either. Thanks a bunch!
This is just a personal opinion from talking with friends and family members that also own minerals in Anderson County, and seems like the leasing has slowed down. I was told by one person that Expand has been “backtracking” a bit on their lease terms. Their reasoning was that Expand is trying to get their footing on the geology and mapping throughout the area.
It has, and unfortunately some of the holdouts may have missed out. One group I know told me they aren’t making any more offers in Anderson County (not Expand).
Yes, the leasing had slowed down, but it appears that may be changing. A contact sent me a lease offer he received this week covering 4,700 gross acres (400 net) in Anderson County. 25 tracts in 16 surveys. Here’s a map of the surveys that include acreage to be leased:
As you can see, this lease offer is extending the previous lease area to the east, all the way over to the Neches River. You may recall earlier this year I reviewed an offer sheet from a friend that referred to a Two Rivers Prospect. I speculated at the time that perhaps this meant that leasing would eventually go all the way across Anderson County from the Trinity to the Neches. It appears that is a real possibility now. We will see.
The lease offer is from Emawood Energy LLC, based in Dallas. They haven’t recorded any leases yet in Anderson County, but they have recorded some leases in Leon County recently. No clear indication of who they are leasing for, but my guess would be Expand.
I own minerals in the Sara Hodges Survey A-350. That appears to be the square shaped block just south of Neches on your map. Does your intel indicate that this area might be leased? We have not received any offers or inquiries.
Yes, the Sara Hodges Survey is one of the surveys included in the lease offer I outlined. Certainly seems possible that you might receive an offer. Emawood will probably be focusing first on the mineral owners who have large acreage.
I agree with you Mr. Herrington. I have stakes in both Houston and Anderson county. Leases have been signed for Houston but not Anderson yet, but they are on there way (October). I have spoken directly with the Landman and Anderson is in play now. What I’m most interested in is Bobby Yancey #1 and the true findings. This will help answer some questions I believe once released.
Very good news hearing that Yancey #1 will be completed and put into production. I would caution to not expect a lot from this deep vertical well bore. Odds are that the operator (who may be CHK as stealth behind the scenes) tested multiple zones to gauge deliverability (mostly gas) in these zones (and then extrapolate vertical results to theoretical Horizontal results).
Possible exception to this may be some overpressured Bossier Sands that had been frac’d and are gas productive. Historically, these vertical Bossier SS wells are typically “high pressure / low volume” producers - but would result in some cash flow for royalty owners
Emawood Energy is Austin based company formed in 2021. Almost 100% positive it is a small acreage leasing / broker shop that hires out to larger companies to do land work
. 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.