We don’t do a lot of business in TX so I don’t have a great pulse on market pricing for leases in Houston County. We have a group trying to lease our minerals for $275 an acre for 3 yr, 20% royalty lease. Can anyone share some top end offers they’ve received? Offers at 20% royalty? Also, anyone getting options to lease at 25%? That’s normally the royalty we require in our OK leases.
Prior posts in the Houston County section of this forum will give you some background on what is happening in Houston County:
If you post where your minerals are located (survey name and abstract number) and what group sent you a lease offer a number of us will be able to help you.
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Thanks Alan. I read through several posts already from the link you provided. It is that same Cypress and Magnetar groups that sent our letter.
We have 25% in la Salle county,Texas. It was negotiated about 15 years ago, however.
Cypress may be leasing for Expand (formerly named Chesapeake). They worked together in Louisiana. I’m not sure what Magnetar is up to. They have leased acreage in the Bossier/Haynesville play areas in Houston and Robertson Counties.
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I received a 3 year paid up mineral lease offer from New Land Ventures, $350 NMA, 20% royalty. Survey: Juan La Riviere, A-49 Prospect: Mitsui Houston Area C, Tract # TX-49-189.1. Does this offer seem reasonable at this time? My brief research suggests $350 may be on the low side.
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Interesting! This is the first indication that Mitsui is competing with Expand for acreage in Houston County! Drake Exploration, leasing for Expand (Chesapeake) has leased more than 1,000 acres in the A-49 Survey.
Mitsui and Expand are competing for acreage in Anderson County and lease terms have reached $1,250 bonus and 25% cost-free royalty.
Of course there are no certainties in lease negotiations, but you should be able to get more than your initial offer.
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Thanks for sharing this important information. It will possible help mineral owners in the area. The Bob Yancy well is just immediately East of your minerals. It was a test well drilled to about 18,600 vertical depth. A large Estate was offered $8,700/net. mineral acre to purchase their mineral rights just recently. You should insist on a 25% royalty and a good lease form is a must. You are in the “drivers seat”, don’t leave Money on the Table! There are going to be horizontal wells drilled in this area real soon. By you sharing the name of the Broker and the terms offered helps everyone! Good Luck.