I’m being offered a lease in San Augustine County, Tx White Survey. The company offering typically buys mineral rights vs lease. Their name is Silver Creek Resources. I negotiated acceptable terms verbally, now waiting on contract. Does anyone have history on the privately owned company? Thanks!
Don’t know what you mean by “acceptable terms” but I hope you are getting a 25% royalty and have a good “no cost “ provision that comports with the latest Supreme Court cases. Before signing, I would have the “contract’ and or lease reviewed by an oil and gas attorney. Depending on the “terms” you negotiated, Silver Creek may flip the lease.
Thank you for the response. There is very little competition in the area for leasing. No, I won’t be getting 25%. I’ve got multiple tracts leased at 20% w/ cost free clause. Bonus in area is typically $1k. I’m not familiar w/ the case for cost free verbiage. Is there more info you can share on the subject? Yes, Silver Creek may flip. They’re in business to make money. The issue at hand is the property hasn’t had interest since 2008. I don’t know anyone in area getting more than 20%.
Just saying “cost free” or having a cost free provision in the lease doesn’t mean you will not pay post production costs. You have to have language making the royalty based on the “gross proceeds” realized by lessee, or the market value at the place of use or sale. If the language is “at the wellhead” then generally your “no cost” provision is essentially worthless. We have an additional 4 paragraphs devoted to post production costs because of recent cases such as Devon v. Sheppard (2023) Like you say, Silver Creek is in the business to make money, so it is not in their best interest to insert the best “no cost” language. I strongly suggest that you have an Oil &Gas attorney review any documents before you sign. I am an attorney but I use an Oil & Gas attorney for my leasing. We have done 3 revisions to our lease (we developed our own) in the last two years to keep up with changing laws.
In leon county tx I read on her that they actually are under comstock. I’m not familiar with all this I’m learning but they are swirling with them. I read comstock is one of the trusted ones, that they have the money and backing. Maybe research on both, and look for the thread about Leon county and the companies buying and leasing. A friend Im researching for has rights in Leon county. He has been told not to sell. More money to come. His is not active nor had any drilling been done on it but it is surrounded. The land has been caught up in an estate for years in foreclosure to my understanding and family pulled it out.. Good luck
Thanks for the insight! I couldn’t find a direct link between Comstock & Silver Creek. Regardless, Silver Creek Resources seems to be a legitimate opportunity to get leased. The published info on them is for buying mineral interests not leasing. I was hoping to discover they have been in the O&G leasing game for a while & mineral owners have had good experiences with them. Thanks, again!!
Is this the A-308 White Survey? Silver Creek I suspect has been working with or has been involved with Pine Wave in the San Augustine area the last couple of years. It almost looks like they have access to some kind of proprietary title as they’ve been buying some really tiny mineral interests and leases in the area for some time.
Yes, It’s A308 White Survey. They are interested my place in McCune area. The contract is being mailed for my review. It’s exciting to have an offer in writing headed my way. I spoke with a Landman about them yesterday. They’ve been active in the A Spear & Johnson Surveys, as well. My NMA = 20.333 in White & 80 in A Spear, so not tiny mineral interest. Hoping they’ll lease both!
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If you have not leased recently, it would be very wise to get a good oil and gas attorney to review the draft lease. Recent Tx Supreme court case and legislation may require a change in wording and significant edits. Make sure that you get paid the same day as handing over a lease. The attorney can hold the signed lease until payment is in the bank.