Sabine Oil did not exercise their 2 year lease option on my acreage in Lavaca County Texas. Penn V has leased all around my place and the land adjoining my place but stopped leasing for the time being just before Sabine let my lease expire. My question…do I need to do anything anywhere to let it be known that Sabine let the lease expire?
Possibly Sabine couldn't sensibly exercise its option because you are surrounded by Penn V, and it might be difficult or impossible for Sabine to utilize your property because of problems like getting you in a pool. Talk to Sabine. They are a very good company and fair to landowners. Their headquarters are in Houston and have a web site where you can find contact information.
If you haven't lately, also talk with Penn V. Also talk with an oil and gas lawyer about Penn V. It appears that Penn V or its landman might have made a mistake and caused the problem. Further, unless there is drilling or production near you, your place might be in a non-productive area, although I doubt that. I don't know where your property is, except your statement that it is Lavaca County. If you have a very large property, there may be other avenues. Find a landman or other companies. Message me, and I may find a landman who can act on your side; but since he would be working for you, you would be paying him or her. Most are not expensive.
You can ask Sabine to file a release in the public records so that it becomes public knowledge that the option was not exercised. Could you please email me the legal description of your property? I may know a few operators interested in leasing your property.
david@hilltoproyalties.com
David James' reply makes sense. Please let this forum know about your progress and how you come out.
Up date…I called the Penn V landman this morning who was working my area and he said he is starting in a couple days to resume leasing. He said I did not need to do anything about getting Sabine to file a release since he knows about it. Thanks for everyone’s input. The only bad thing about this is PV is no longer paying the $5000/ac. that they previously were paying.
Would you mind sharing the legal description of your property and the net acreage amount? The best way to get a higher bonus payment is to introduce a competing offer.
I just had a call from the Penn V landman and am very upset…30 ac. adjoining my acreage in Feb. got leased for $3500/ ac. from PV and others farther north got $5000 last fall. I am now being offered $1500/ac. for my 1/2 mineral interest in 90 ac. There are about 200 acres around me that I know are not leased and probably more that I don’t know about. I told the landman I wouldn’t accept his offer, that I wanted $3500. He said PV wouldn’t go any higher. My question is…what can happen if we neighbors on the 200 ac. stick together and refuse to lease for $1500? Or if some of them lease for that and some of us don’t making it a smaller acreage that would be involved that is unleased and then PV decides to drill on an adjoining lease? In other words what are my consequences for not leasing?
Just thought of another scenario…what happens if the owners of the other half of the mineral rights I own decides to accept the $1500/ac. offer and I don’t?
Where is your lease relative to the Sabine Olsovsky or Sabine Sustr wells? Sabine just announced a merger with Forest. May explain why they didn't extend.
My mineral interest is about 7 mi. SE of Shiner on CR 307 off FM 531. Sabine leased a lot of acreage last fall and earlier anywhere from 1/4 to 1/2 mile N and NW of my place and paid $4500-$5000/ac. I don’t know where the above mentioned wells are. I’m guessing between Shiner and Moulton.
I'm new to the group, joined to keep up with the happenings in Lavaca county, I live in the Houston area. I have minerals approx. 4 miles SW of Shiner, in the J Johnson survey. See where Devon just applied for a drilling permit for their "Colleen" unit in the Lavaca County School Land survey (approx. 5 miles SW of Shiner). I checked drilling permits for the Sustr well, NFR has a unit 3.3 miles SW of Moulton in the W Taylor survey, and also an Olsovsky unit, NE of Moulton in the W Daniels survey, according to the Railroad commission site. Not sure if these are the same units referred to above.
I, also, am new to this group. Our family's initial 3 year lease has expired and we have not been contacted concerning the 2 year option...assuming it will not be exercised. Property is East of Yoakum in the B. Whitson and S. Morris surveys and was originally leased by Emerald Leasing, later assigned to Hess. We received no notice who was assigned the lease when Hess pulled out of the Eagleford and I have found no reference to the lease on texasfile website. I am concerned with how I can obtain a release to make this property available to possible future lease offers.
My family also has minerals in the Silas Morris survey, more south, off FM 2543 between Yoakum and Sweet Home. Currently non-leased. You may want to check under ZaZa (instead of Hess) for the Release... we started out with Emerald and ZaZa recorded the Release.
WGL said:
I, also, am new to this group. Our family's initial 3 year lease has expired and we have not been contacted concerning the 2 year option...assuming it will not be exercised. Property is East of Yoakum in the B. Whitson and S. Morris surveys and was originally leased by Emerald Leasing, later assigned to Hess. We received no notice who was assigned the lease when Hess pulled out of the Eagleford and I have found no reference to the lease on texasfile website. I am concerned with how I can obtain a release to make this property available to possible future lease offers.
Emerald Leasing was the original leasing company on my two leases as well. Then ZaZa took over and after that I never heard who took over from them but knew someone else had so I called ZaZa and they told me Sabine took over both my leases. Sabine let one of the leases go and now Penn Virginia is negotiating to lease it. These leases are SE of Shiner.
$1500/acre might be the best you can get in your area. Penn leased at $3500 last November and December since they were having some competition with Sabine...and Penn overpaid for a lot of land. You are not in a really good lower Eagleford area, and not at all in the MARL or Upper Eagleford... Odds are if you do not lease, and Penn decides to drill there, which odds are they would not anytime soon, you would just be orphaned...and they will make the untis around your property. I have seen this many times. Penn will definately not drill in 3 years at your location, you are too far south and east right now...so if their is an option, you would probably get that money as well.....and since a well from Penn or another driller on your property is many years away, you will probably lease with someone else in 5 years anyway after this expires. $67,500 for your share is good....and if they do drill, the royalty is where the money is at especially with the amount of net mineral acres you have. Good luck !! I was in the same boat. I am in Penn's "preferred" area and only got $2500/acre last month, when my neighbors got $3500/acre end of last year. I took this offer, did not want to be orphaned. However, I do not think Penn is leasing in your area at this time....heard most offers off the table, unless they are to get a tract up to 100% leased (partial mineral owners on 1 tract). This info came from my landman about 2 weeks ago...but things do change...again Good Luck !!
J. Michal said:
I just had a call from the Penn V landman and am very upset....30 ac. adjoining my acreage in Feb. got leased for $3500/ ac. from PV and others farther north got $5000 last fall. I am now being offered $1500/ac. for my 1/2 mineral interest in 90 ac. There are about 200 acres around me that I know are not leased and probably more that I don't know about. I told the landman I wouldn't accept his offer, that I wanted $3500. He said PV wouldn't go any higher. My question is....what can happen if we neighbors on the 200 ac. stick together and refuse to lease for $1500? Or if some of them lease for that and some of us don't making it a smaller acreage that would be involved that is unleased and then PV decides to drill on an adjoining lease? In other words what are my consequences for not leasing?
MR. ML said:
$1500/acre might be the best you can get in your area. Penn leased at $3500 last November and December since they were having some competition with Sabine...and Penn overpaid for a lot of land. You are not in a really good lower Eagleford area, and not at all in the MARL or Upper Eagleford... Odds are if you do not lease, and Penn decides to drill there, which odds are they would not anytime soon, you would just be orphaned...and they will make the untis around your property. I have seen this many times. Penn will definately not drill in 3 years at your location, you are too far south and east right now...so if their is an option, you would probably get that money as well.....and since a well from Penn or another driller on your property is many years away, you will probably lease with someone else in 5 years anyway after this expires. $67,500 for your share is good....and if they do drill, the royalty is where the money is at especially with the amount of net mineral acres you have. Good luck !! I was in the same boat. I am in Penn's "preferred" area and only got $2500/acre last month, when my neighbors got $3500/acre end of last year. I took this offer, did not want to be orphaned. However, I do not think Penn is leasing in your area at this time....heard most offers off the table, unless they are to get a tract up to 100% leased (partial mineral owners on 1 tract). This info came from my landman about 2 weeks ago...but things do change...again Good Luck !!
J. Michal said:I just had a call from the Penn V landman and am very upset....30 ac. adjoining my acreage in Feb. got leased for $3500/ ac. from PV and others farther north got $5000 last fall. I am now being offered $1500/ac. for my 1/2 mineral interest in 90 ac. There are about 200 acres around me that I know are not leased and probably more that I don't know about. I told the landman I wouldn't accept his offer, that I wanted $3500. He said PV wouldn't go any higher. My question is....what can happen if we neighbors on the 200 ac. stick together and refuse to lease for $1500? Or if some of them lease for that and some of us don't making it a smaller acreage that would be involved that is unleased and then PV decides to drill on an adjoining lease? In other words what are my consequences for not leasing?
Thank you Mr. ML for your in-put. I decided to go ahead and sign with PV as they wouldn’t budge off that $1500/acre and I did not want to be left orphaned like you said. I’m just waiting to get my lease and bonus check now.