Can anyone give me a range as to what my mineral rights might be worth? I own 25% mineral interest (10 acres) only in Atascosa County. Landowner has the other 75%. I am told by the landowner the drilling company (EOG) won't pool. Does this sound right to you? Now,he wants to buy me out. There has been considerable drilling activity in the area.
I am have always been an absentee landowner who bought this property from my mother years ago. Accordingly, I am not familar with the area, players, or activity.
Oil and Gas companies deal with split mineral interests like this all of the time. Sounds like the surface owner might be trying to scare you into selling out your own 25% interest for his own benefit.
Atascosa County is very well situated in the Eagle Ford and acreage there, once in full production, should see profitable royalty income for decades to come.
You should talk directly with the landman for EOG about your mineral property. If they have already leased the surface owners 75% mineral interest, they should certainly be interested in your own 25% stake.
Oil and Gas companies deal with split mineral interests like this all of the time. Sounds like the surface owner might be trying to scare you into selling out your own 25% interest for his own benefit.
Atascosa County is very well situated in the Eagle Ford and acreage there, once in full production, should see profitable royalty income for decades to come.
You should talk directly with the landman for EOG about your mineral property. If they have already leased the surface owners 75% mineral interest, they should certainly be interested in your own 25% stake.
I am a Certified Professional Landman and very familiar with Atascosa County.
DO NOT SELL YOUR MINERALS!!!
Atascosa County is right in the middle of one of the largest oil plays in the history of the United States - the Eagle Ford Shale.
I have attached a zip file with a number of maps of the area - they may help. You may also want to Google “Eagle Ford Shale” - you’ll pull up thousands of articles and links on the subject.
Your minerals may be worth thousands upon thousands upon thousands of dollars, even undeveloped.
I strongly advise you to never sell them. Once production is established, you will be receiving royalty payments on a monthly basis for years and years to come.
EOG will pool. They’ve pool lands and undivided interests such as yours for almost every well they’ve ever drilled.
Whoever told you that appears to be trying to bluff you into selling. Lying to you like that may actually constitute fraud.
One issue with absentee ownership is that the mineral deed may not have current contact information. It could very well be that EOG has been trying to find you. I would call them or send an e-mail to the Land Department. EOG is one of my favorite Company’s to be able to lease too. I am a royalty owner with them and there dealings with us have been very favorable. In addition they have excellent experience in drilling horizontal wells and maximizing production. They have demonstrated this good performance drilling the Barnett Shale in N Texas. Again the issue is don’t sell your mineral rights.
Thanks for all your input. I think I need to share a little more information. EOG has leased 26,000 acres of a 95,000 acre ranch/subdivision in South Central Atascosa County. The leased area consists of 2600 ten acre tracts. Approximately 90 % are solely owned by Landowner. I hold a 25% deeded mineral interest only in one of the landlocked 10 acre tracts. There are other tracts (12 to 20) such as mine in the leased area that are not owned 100% by Landowner. Landowner has been active trying to purchase remaining tracts since two producing wells (primarily oil) have come in. I spoke with the landman and land advisor for EOG. This is horizontal drilling, and they are routing their drill path around any tract not owned 100% by Landowner because of metering expenses involved in separate ownership. I am told they may or may not continue this practice in the future, and my tract may or may not come into the drill path. I do not have access to my tract as it is land locked. They could decide to drill through my tract, and I would never know the difference as Landowner has leased the surface rights. I asked the landman if EOG was interested in purchasing my mineral interest. He advised me that it would be better to work with Landowner. I know this sounds like a crap shoot, and it probably is. In light of this, would anyone recommend I sell the mineral rights, and if so, how much? The landman said property owners were getting a minimum of $250 and in some cases more $2,500 per acre for a lease. Any further suggestions?
David J. Gaar said:
Oil and Gas companies deal with split mineral interests like this all of the time. Sounds like the surface owner might be trying to scare you into selling out your own 25% interest for his own benefit.
Atascosa County is very well situated in the Eagle Ford and acreage there, once in full production, should see profitable royalty income for decades to come.
You should talk directly with the landman for EOG about your mineral property. If they have already leased the surface owners 75% mineral interest, they should certainly be interested in your own 25% stake.
In my 30+ years as a Field Landman, I’ve never heard of an owner being fed such a line of crap.
Metering costs for separate interests? They’ve got to be kidding. That’s an accounting issue, and believe me EOG has plenty of Accountants and more cutting edge accounting software than you can imagine.
What is the legal description of the land you have an undivided interest in? I’ll look it up and send you a map and some additional data of what’s happening on the ground.
And what are the names and contact information of the two Landmen for EOG that you spoke with? Do they work for EOG or for a Land Serivces firm contracted by EOG?
Thanks for all your input. I think I need to share a little more information. EOG has leased 26,000 acres of a 95,000 acre ranch/subdivision in South Central Atascosa County. The leased area consists of 2600 ten acre tracts. Approximately 90 % are solely owned by Landowner. I hold a 25% deeded mineral interest only in one of the landlocked 10 acre tracts. There are other tracts (12 to 20) such as mine in the leased area that are not owned 100% by Landowner. Landowner has been active trying to purchase remaining tracts since two producing wells (primarily oil) have come in. I spoke with the landman and land advisor for EOG. This is horizontal drilling, and they are routing their drill path around any tract not owned 100% by Landowner because of metering expenses involved in separate ownership. I am told they may or may not continue this practice in the future, and my tract may or may not come into the drill path. I do not have access to my tract as it is land locked. They could decide to drill through my tract, and I would never know the difference as Landowner has leased the surface rights. I asked the landman if EOG was interested in purchasing my mineral interest. He advised me that it would be better to work with Landowner. I know this sounds like a crap shoot, and it probably is. In light of this, would anyone recommend I sell the mineral rights, and if so, how much? The landman said property owners were getting a minimum of $250 and in some cases more $2,500 per acre for a lease. Any further suggestions?
David J. Gaar said:
Oil and Gas companies deal with split mineral interests like this all of the time. Sounds like the surface owner might be trying to scare you into selling out your own 25% interest for his own benefit.
Atascosa County is very well situated in the Eagle Ford and acreage there, once in full production, should see profitable royalty income for decades to come.
You should talk directly with the landman for EOG about your mineral property. If they have already leased the surface owners 75% mineral interest, they should certainly be interested in your own 25% stake.
Also note that you can easily keep track of what areas are being drilled by following the Texas Railroad Commission applications on their website. That said, there is absolutely no risk that you would not know whether a well is planned for your unit or whether the drill path passes under/through your own minerals. If you have the proper description of your minerals location and the survey name and abstract #, it is quite simple to check that info out on the TRRC website as to what drilling is permited or completed. If you were told otherwise directly by the landman that you were talking with then they are flat out lying.
Charles Emery Tooke III said:
Gregory -
In my 30+ years as a Field Landman, I’ve never heard of an owner being fed such a line of crap.
Metering costs for separate interests? They’ve got to be kidding. That’s an accounting issue, and believe me EOG has plenty of Accountants and more cutting edge accounting software than you can imagine.
What is the legal description of the land you have an undivided interest in? I’ll look it up and send you a map and some additional data of what’s happening on the ground.
And what are the names and contact information of the two Landmen for EOG that you spoke with? Do they work for EOG or for a Land Serivces firm contracted by EOG?
Thanks for all your input. I think I need to share a little more information. EOG has leased 26,000 acres of a 95,000 acre ranch/subdivision in South Central Atascosa County. The leased area consists of 2600 ten acre tracts. Approximately 90 % are solely owned by Landowner. I hold a 25% deeded mineral interest only in one of the landlocked 10 acre tracts. There are other tracts (12 to 20) such as mine in the leased area that are not owned 100% by Landowner. Landowner has been active trying to purchase remaining tracts since two producing wells (primarily oil) have come in. I spoke with the landman and land advisor for EOG. This is horizontal drilling, and they are routing their drill path around any tract not owned 100% by Landowner because of metering expenses involved in separate ownership. I am told they may or may not continue this practice in the future, and my tract may or may not come into the drill path. I do not have access to my tract as it is land locked. They could decide to drill through my tract, and I would never know the difference as Landowner has leased the surface rights. I asked the landman if EOG was interested in purchasing my mineral interest. He advised me that it would be better to work with Landowner. I know this sounds like a crap shoot, and it probably is. In light of this, would anyone recommend I sell the mineral rights, and if so, how much? The landman said property owners were getting a minimum of $250 and in some cases more $2,500 per acre for a lease. Any further suggestions?
David J. Gaar said:
Oil and Gas companies deal with split mineral interests like this all of the time. Sounds like the surface owner might be trying to scare you into selling out your own 25% interest for his own benefit.
Atascosa County is very well situated in the Eagle Ford and acreage there, once in full production, should see profitable royalty income for decades to come.
You should talk directly with the landman for EOG about your mineral property. If they have already leased the surface owners 75% mineral interest, they should certainly be interested in your own 25% stake.
Have you heard any info on those EOG wells in Atascosa County that is on the Eagle Ford Platt Map no date?
Thank you for the maps I am always searching for maps I will post some on this forum soon. I just joined.
Charles Emery Tooke III said:
Gregory-
I am a Certified Professional Landman and very familiar with Atascosa County.
DO NOT SELL YOUR MINERALS!!!
Atascosa County is right in the middle of one of the largest oil plays in the history of the United States - the Eagle Ford Shale.
I have attached a zip file with a number of maps of the area - they may help. You may also want to Google "Eagle Ford Shale" - you'll pull up thousands of articles and links on the subject.
Your minerals may be worth thousands upon thousands upon thousands of dollars, even undeveloped.
I strongly advise you to never sell them. Once production is established, you will be receiving royalty payments on a monthly basis for years and years to come.
EOG will pool. They've pool lands and undivided interests such as yours for almost every well they've ever drilled.
Whoever told you that appears to be trying to bluff you into selling. Lying to you like that may actually constitute fraud.