Oil & gas discussion group for those interested in Madison County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
What is the going rate on an oil lease for the per acre bonus? Can anyone tell me what is important to work out with them before I sign?
Hey Martin! They are over by Lake Madison Park. My great uncle donated the land to make the park and the mineral rights were passed on. We just got a call out of the blue and they are sending a lease so fast, I just need a little information to get comfortable that I am doing the right thing and not giving away what my people worked so hard for. I would appreciate any advise or help I could get here. Thank you so much!
That would be great! It all seems so much bier than me!
Does anyone have info on the Eagle Ford Formation in the Madison Co area?
Who leased your acres, and what terms?
A number of companies are becoming active in Madison County. Petromax, CML, Devon, Chesapeake, Herd to name a few. A good portion of the County is under very old leases without pugh clauses as to surface acreage or depth. This is resulting in Operators seeking to reform or re-drill units under the old leases. One advantage that mineral owners may have that can be used to their benefit is that some of the old lease forms restrict the size that units may be and prohibit the number of times a unit may be formed. Further many of the Pooled Unit Declarations are drafted in such a way that the Unit will require amendment [lessor’s consent] in order to proceed with another project. Hope this helps.
Woodbine has been active for years. Is the Eagle Ford Formation the target for PertMax, Devon, Chesapeake, and CML? If so, how deep is it, and is it oil or gas. If not, what formation are they so interested in?
Enjoy the day.....
Yes, the woodbine has been active for years. That, among other things, is what is causing so much acreage to be HBP. The Eagle Ford shale is and has been known about for years in this area. For the most part it was considered something to drill through and not get your drill pipe stuck. Now folks are reviewing logs and attempting to take another look at it. In Madison County the Shale is snug up against the bottom of the Austin Chalk. Immediately below the bottom of the Chalk and ‘above’ the shale is where the Woodbine has been produced. I am seeing some operators calling it the Eaglebine. Their hope is that the makeup of the rock formation both at the top of the Eagle Ford and within the Eagle Ford will be geologically broken up enough to facilitate fracking and production coming after that. Please note that the Eagle Ford shale formation is not consistent as it makes its way from South Texas up this way. It may not be as fractured or frackable and it is more shallow and thus will have less pressure than as you go South West starting at say, Fayette County. Nevertheless, no one really knows at this time what will turn up. Brazos, Madison and Leon are all candidates for Eagle[bine] drilling attempts. Some of which, over time, and after different techniques are developed, may be really good wells. Hope this helps.
Will a well be permited as EagleFord, Woodbine, or Eagle/Bine? Any Idea who will try this first in Madison County and when?
Hey…it was a broker working for Silver Oaks Energy…they will most likely sell the group of leases to a bigger company. Pretty standard terms I think. I’ve heard not many people like to give out too much info publicly but I will share if you want to e-mail me direct. I just hope they hit a gusher! : )
Please let me get your email address to exchange oil and gas info.
What is ment by the phrase, "Your land is HBP."
wcm…Held By Production
Get to know the neighbors that own the property and minerals around your acres. Surface owners can help by contacting you when drilling or other activites are done. Mineral neighbors can trade info about who called them, and what the offers were. The more you know the better.
Tax records are online and an evening of online searching may answer several questions...
wmc…how do I give you my e-mail? do you have to “friend” me first so I can send you a note in your inbox? let me know and I will be happy to trade info.
Send me an email at email@example.com, and I will then route you to my personal email address. I'm not sure how to do that some other way.
Has anyone heard when drilling will start in Madison County? My sources say summer will be busy.
Let’s all hope it is summer and that they find a big, big, BIG lake of oil!!!
I live out on FM 1372 across from west productions the Hanover Gas Plant. My Neighbor, to the dislike of all her neighbors has sieged a lease on her land for a Oil drill. The lease is only for four acer and the pool is under her fence line. Devon Oil is the company to drill I am not able to fine out any other particulars do any of you know any more, it will be right up against the zone 4 equipment yard and dump. Thanks