I am currently under 2 year option and I heard that people were getting contacted to pick up checks in Hallettsville to extend option for another 2 years for $1500 an acre. Anyone know about this and is this a good price at this time. My 2 year option was only for $75 an acre. Wish I could get out of this but it is what it is. Expires in a year.
it would seem so but, thee were some contracts being offered for more than that outside of Shiner toward hallettsville. They were offereing 1750.00 up to 2500.00 for first time leases…
What percentage are they offering with that lease amount?
23 %
Odds are your leaseholder will pay you the option, and you are unable to get out of it. You would hope that they forget to send you the check to enforce the option. Most leases state that this must be done before the expiration of the main lease period. My cousin asked for more money when his option came up and they laughed at him, and gave him his check for $75/acre for the next 2 years. My property is coming up in the next couple of months…I would get $200/acre and I am hoping that they will not pay me before the expiration…I can get more right now. Looks like $1750/acre and 25% is the norm as long as you are west or northwest of Hallettsville. Make sure you have your attorney look over the lease, there are a lot of clauses you want to ensure are in there to protect you the mineral owner, and surface owner. If the 3 ZAZA wells come in good then we will see more play north and a little east of Hallettsville, but the Eagleford play will be on and to the west of the Sligo shelf margin. Google Sligo shelf to get a map.
My option is up in January of 2013. Does anyone know what they are offering for re-leases? Are the offerings the same as before? What is the lease per acre? My property is just south of Moulton toward Shiner on Hwy 95.
Hey Daryl--just saw your post, most people are talking on the Fayette county Forum even for Lavaca county, so i seldom sign in on this one. You are in a hot area. you should be getting about $1500/acre for a 3 year no option lease with 25% royalty. Try not to tie this up for 5 years, so no 5 year lease or extra 2 year option. Contact Geosouthern or Southern Bay, even Conoco/Phillips. However, for these horizontal wells you need at least 300 acres if not 600+ acres continuous to have a well done. Are your neighbors with the same company. If not you will have a problem. Also go with the major company, do not lease with a flipper, you will get stuck !!
Daryl Fojtik said:
My option is up in January of 2013. Does anyone know what they are offering for re-leases? Are the offerings the same as before? What is the lease per acre? My property is just south of Moulton toward Shiner on Hwy 95.