Oil & Gas Lease Rates in La Salle County, TX

Texas Mineral Rights La Salle County, TX
21

We have been offered $500/net mineral acre and “are entitled to” $500 bonus per net mineral acre for 3 years with 2-year opportunity to extend the primary term. Property is in LaSalle County (Altito). Insight? Advice? Help?

I represented one landowner in LaSalle that I negotiated a 3-year lease, 1/4 cost free royalty, $3000 per acre bonus and a lease form that will give you heartburn.

I negotiated for another landowner on the same terms as above.

I negotiated for another landowner for 3-year lease, 25% cost free royalty and $1100 per acre bonus.

All the leases were paid up and closed this month.

Best.

22

We have been offered $500/net mineral acre and “are entitled to” $500 bonus per net mineral acre for 3 years with 2-year opportunity to extend the primary term. Property is in LaSalle County (Altito). Insight? Advice? Help?

23

We’re new to this group and wondering if anyone could tell us whether there is presently any drilling activity at Altito Ranch Lands/Altito Subdivision?

24

Hi All, back in early-mid 2011 for a small plot 40+ acres, EOG offered 3-year primary / 2-year extension lease in La Salle (dull) started at 500 per net acre and 20% royalty.

We signed at 1000 per net acre and 25% cost-free royalty, yes to water rights, no surface rights.

At that time it was pretty good, but as of today I think it should be more. So far to date EOG and others are getting 100% success in drilling wells at 5.5 million each and approx 5000 barrels per acre recovery.

5000 x let’s say 90.00 per barrel = $450,000 that’s per acre, at 640-acre pools that’s 3,200,000 barrels of oil.

X $90 per = $288,000,000 - 25% royalty = $216,000,000 to oil company and 72,000,000 to land owners.

$216,000,000 for an investment of 5.5 million for well and 0.6 million for lease cost. Investment over say 5 to 15 years NOT BAD in my book.

I hope you all hold out for 30% cost-free royalty and 2 to 3000 for bonus.

I think they will drill the prime spots and bundle up the rest and sell it to foreign country at 10 to 15,000 an acre. I don’t think they will lose money on the acres they don’t drill.

But my question is: do the oil companies send out division orders before they file drilling permits with the RRC or after?

Am I wasting my time looking at the RRC for drilling permits on my land because the division orders will come in the mail first?

Good luck to you all and thank God.

25

Kelly Taylor,

Your “5000 barrels per acre recovery” is the first time I have seen any number associated with oil shale recovery. While I am moderately excited, may I ask where this number came from? Is this an industry expectation, average, or something else?

Thank you,

Gary & Laura

ps, still waiting on our division order

26

My siblings and I have just been offered a lease offer for $1000 bonus per acre and 25% royalty for a 3-year lease for mineral rights inherited from my father in northern La Salle County, abstract 629, survey 35, and abstract 73. The bonus figure sounds low to me based on what I’ve been reading. What is the going rate in that area, and how is oil production in that area?

27

M L Brenner,

We are about 5-6 miles west southwest. We leased in 10/2011 for $1500 per acre 3yr with 2yr extension, 25% no cost royalty. They just approved a permit 11/12 to drill and no apparent action will be expected for 6-8 months. At the time there were few “green dots” in NW LaSalle on Tx RR Com map. Now it is polka dotted. I think $1500 is low now. I follow a 2 yr old Brownlow well #32270 in Abstract 441, ~60,000 barrels oil for 1/12-11/12. A more recent Schwope well#32797 in Abstract 437, ~60,000 barrels oil 5/12-11/12, to compare production. Go to Tx RR Com & query production on wells nearer you.

M L Brenner said:

My siblings and I have just been offered a lease offer for $1000 bonus per acre and 25% royalty for a 3yr lease for mineral rights inherited from my father in northern La Salle County Abstract 629, Survey 35, and Abstract 73. The bonus figure sounds low to me based on what I’ve been reading, what is the going rate in that area, and how is oil production in that area?

28

Thanks for the reply, I’ll try to look at producing wells in the area. We just got our lease offers so we have some time to reply. Based on what I’ve heard from others so far, $1000 an acre is a low ball figure.

29

We are being offered $2500/ac bonus plus 25% royalty, just east of Cortula. The royalty is more important than the bonus. Be sure you get a check, not a bank draft, at the same time the lease is signed.

30

In Sept 2011, my family leased mineral rights to Chesapeake Exploration for bonus amount of $1500 per net mineral acre for three years with a two year extension option, 25% LOR… The property is in La Salle and Dimmit counties. I have no contact with the company and know nothing about what, if anything, is being done on the property. How do I find out what is happening?

31

Margaret,

Texas Railroad Commission has drilling & production information but runs about 2 months behind. DrillingInfo.com has access to Texas Railroad Commission & publishes much sooner but has a steep subscription fee. In what abstract are you located or name of well? I have gathered quite a bit of information in the neighborhood of Abstract 434 La Salle & willing to share if you are close.

32

Mary Ellen,

I am totally ignorant about all of this… but the description of the property is as follows: 823.19 acres of land, being the NE/4 of I. & G. N. R. R Co. Survey 25, Abstract No. 285 in Dimmitt County and all of the I. & G. N. R. R. Co. Survey 26, Block 5, Abstract No. 1216 in Dimmitt County and Abstract No 374 in LaSalle County, Texas.

So, I don’t know if any of this is close to you… I remember reading that there was a video describing some of the drilling activity, but I have not been able to find it.

Thanks for your help!!

Peg Rucker

Mary Ellen Creech said:

Margaret,

Tx RR Com has drilling & production information but runs about 2 months behind. DrillingInfo.com has access to Tx RR Com & publishes much sooner but has a steep subscription fee. In what abstract are you located or name of well? I have gathered quite a bit of information in the neighborhood of Abstract 434 La Salle & willing to share if you are close. ME

33

Peg,

I sent you a private message. I will be glad to share the little I have learned. ME

34

I am also interested in the dry gas belt between Encinal and Freer, Texas. My sister and I own mineral rights to my Dad's land that we inherited. Anyone have any information. I keep hearing companies are now interested in gas.

All of our other friends have oil...

Lee Adami

35

We have 424 acres out of the S.W. Yeager Survey No. 8. Does anyone have interests in this area and a feel for the recent O&G leasing activity? Typical lease terms being offered? Any experience out there with Swift Energy Operating?

36

Hi J.R, I think our family has the same mineral rights as you. We are under the Baetz lease for the 400 acres out of the S.W. Yeager Survey No. 8. My grandmother was a Bascom and our rights come from the Owings line.

Please contact me at Tuttle720@bellsouth.net to discuss. Thanks Julia

J.R. Owings said:

We have 424 acres out of the S.W. Yeager Survey No. 8. Does anyone have interests in this area and a feel for the recent O&G leasing activity? Typical lease terms being offered? Any experience out there with Swift Energy Operating?

37

Has anyone dealt with EOG Resources in Cotulla, TX ? Any insight or pros and cons would be appreciated.

We have an offer for $2000/Acre Bonus with a 3 year Mineral interest Lease with an option to extend 2 additional years at $2000/Acre and a 1/4 Royalty.

Thanks

38

beian how man acres?

39

Brian how many acres?

40

Sorry, 20 Acres...