I think the 30K/acre was in Haynesville by Chesapeake, when natural gas prices were high - > 10/MCF. Have there actually been any wells drilled recently in Mitchell County near Loraine?
I would love to know what their siezmographs showed in this area. I think in the Barnet Shale they felt they had a ‘sure thing’. I’m for expanding drilling in this country!!! I have an idea that lease prices will go up and the more one gets, the more the next one will.
I do not think that this should be worth $30,000 an acre maybe up to $5,000 a nma. If you look at it like just free money that you didn,t have you are just giving something you own away it is worth what the market will pay. If oil was $30 a barrel it would be different. Leases in Ohio are up in the $5,000 range and they are only in the testing phase there.
As I said ours has a clause that they will go up, if they pay more later, so let me know when you get $5000, and nothing is free, I have heard that term free money from various people on social programs, and we all end up paying in the end, ie taxes, higher gas prices…And it is like housing your house is worth what someone is willing to pay for it. Sorry but as I said we have a clause so if it goes up, then ours will too…
Rebecca you did good getting that clause in your lease, and
Ed you are correct about the royalty being most important, you should all demeand at least 25%. Think about this why would you lease for a 25% royalty If you get a very small bonus when you can possibly join in as a working interest and get 100% of the proceeds after pay out and a risk penalty. Of course this depends on how many acres you have but works well when say you own 1/4 of minerals under a large tract.
True, a few of us land owners with properties connected actuall got $650/ac and 25% royalty
We are going to sign with Lincoln Land & Title (Devon) I look at it this way, I feel truely blessed to just have a chance, I don’t want to be greedy, this is something I never thought would happen to us, I feel when you are gambling and winning, and you get that feeling it is time to walk away with your winnings you have, then you do it. Maybe you should put 30 day clauses in that is the price goes up then yours should,…good luck on your $30,000, not trying to be nasty, just realty…and greatful at this point.
Thank you Robert M, appreciate it, we signed a lease for $800/ac and 25% Royalty yesterday…
Here is a link to an article that talks a little bit about the ongoing leasing activity in the Fisher, Mitchell, and Scurry areas that I thought ya’ll might like.
Thanks Robert! Nice article…would love to learn more if anyone has information.
Www.mitchellcad.org might help you get started. You can get the section number off of their and an oil and gas attorney in the area will probably have a map with the sections and can help. A landsman you are dealing with can also help you. Good luck.
Here is a link to another article that may be of interest. The CEO of Pioneer is very bullish on the Wolfcamp and I assume that is the zone we are all counting/hoping on. http://news.investors.com/article/604304/201203141341/it-is-all-abo…
Great thank you for keeping us up on this.
Left at the altar… Our offer of 3/2, $800/acre, 25% was withdrawn yesterday. Any one else have this happen?
Yeah, we didn’t have a lease yet, just the offer. There were mistakes in the draft of the lease, or we would have signed a couple of weeks ago, but it had to be redone, and Friday Lincoln/Devon withdrew the offer. Apparently, this happened with others as well.
Bob, where is your property located?
We are on West Hill, about a mile west of Colorado City just south of KVMC and I20.
Heard a nasty rumor yesterday that Fri Morning , Lincoln Land and Title and Devon pulled out?
Bob what happened, was it a lease already signed? or were you waiting yet?
Thank you
Bob, if you don’t mind me asking, were the mistakes items that Devon put in, or simple typos regarding surveys, etc.?
The first mistake was that the property is owned jointly by 10 family members, but each has a different ownership interest, and the lease simply divided things 10 ways instead of proportionally, so some would have gotten less of the lease payment than they were entitled to, and some would have gotten extra. After that was redone, the new lease turned out to be written for a completely different family property miles away that was already leased. I’m still scratching my head on how that happened exactly.