I own surface and mineral rights for property located in Crockett TX, Houston County, I was first offered $250 an acre and 1/5 royalty, i declined and then was offered $400 an Acre with 1/5 royalty. Does anyone know what the going rates are for the area. It appears that i am dealing directly with the company funding the the drilling, at least that's what the person i talked to said. I understand that a "flipper" would offer me something like this offer and then sell it for several thousand an acre to the oil company. This area is very active with several companies offering oil leases right now and obviously i don't want to leave any money on the table. I agreed to the amount offered pending review of the lease and have not yet signed. The lease and draft were hand delivered within 3 days of the initial offer which leads me to believe i may be getting the short end of the stick both with the bonus and the lease terms. Seems like they are moving way to fast for me to sign anything so quickly. Any help would be greatly appreciated.
Im in Limestone County and was offered 360. and 3/16…first offer a few days ago… shirley
I own mineral rights in Houston County and was just contacted by a Landman with an offer to lease at $300 and 1/5 royalty. This would apparently be with an outfit called Energy Land Resources. I’ve not been able to dig up much info on them or on activity in Houston County. Would appreciate any info from others in the area.
I was also contacted about an offer to lease for the same terms in Lovelady, Houston County. I have not been able to find out anything about Energy Land Resources. I am wondering if this is a reasonable offer $300 for 5 years. If you have found out anything please let me know.
Buddy, Thanks for the reply. The offer was actually $150 for 3 years and $150 for 2 additional years making it a total of $300 per acre. I only have 7 1/2 acres. The royalty is 1/5. All of this can be negotiated can't it?
Dorothy
Buddy Cotten said:
Dear Dorothy,
ELR is owned by Mickey Phelan in Beaumont. He has a number of clients. Five years is too long. What is the royalty?
I am dealing with Mickey on another matter right now.
Best,
Buddy Cotten
Buddy what would be a good counter offer to come back with. I am not actually dealing with ELR, I am dealing with someone from Burke Leasing. Is this normal or should I be dealing directly with Mickey? They said it was for ELR.
Buddy Cotten said:
Mickey starts real low.
Dorothy Hocott said:Buddy, Thanks for the reply. The offer was actually $150 for 3 years and $150 for 2 additional years making it a total of $300 per acre. I only have 7 1/2 acres. The royalty is 1/5. All of this can be negotiated can't it?
Dorothy
Buddy Cotten said:
Dear Dorothy,
ELR is owned by Mickey Phelan in Beaumont. He has a number of clients. Five years is too long. What is the royalty?
I am dealing with Mickey on another matter right now.
Best,
Buddy Cotten
Dear Dorothy,
That is too specific a question for me to answer on a public board.
I’ve been approached by a new south minerals on behalf of etoco in regards to my minerals. I was curious to see whatever came of your deal? Did you find that $400 was the best they would do?
Just curious if you were successful negotiating a deal on your minerals or if you found out what minerals were bringing per mineral acre in Houston county.
Janice Pratt said:
I own mineral rights in Houston County and was just contacted by a Landman with an offer to lease at $300 and 1/5 royalty. This would apparently be with an outfit called Energy Land Resources. I’ve not been able to dig up much info on them or on activity in Houston County. Would appreciate any info from others in the area.
Just checking since this is 2012 what has happened since you were first contacted.
I was contacted by a Landman to lease a 181 acres in Houston County 3/16 and 300 per acre signing bonus 3 year with a 2 year extension for another 300 per acre.
He seems to want to get me to sign and has sent me the papers to send back tomorrow, I just talked to him on the phone yesterday 7-24-12 Kind of fast rush thing.
First - No 2 year extension. After 3 years either things are going good in the area and they will renew at a below current market value or if things are bad they will not renew. Only the oil guys win.
Second - Royalty percentage out trumps bonuses in most cases. Bonuses are a one time offer. Royalty percentages can last for decades and can be worth many times as much as the up front bonus. Most people are trying to get 20-25%.
Good luck.
Thanks Vernon:
I did try and get him up to 25% but he wouldn't move, said just not a big enough track. It the rush me to sign that's got me concerned, will see.
Got 25% on a 1373 acre track in Dayton Texas, Liberty County, good bonus and they never set foot on the property, hope to see some activity down that way again soon.
Vernon said:
First - No 2 year extension. After 3 years either things are going good in the area and they will renew at a below current market value or if things are bad they will not renew. Only the oil guys win.
Second - Royalty percentage out trumps bonuses in most cases. Bonuses are a one time offer. Royalty percentages can last for decades and can be worth many times as much as the up front bonus. Most people are trying to get 20-25%.
Good luck.
I think generally that when the landman is in a hurry, it's in his or his client's best interest and not yours. I think you would be well served if you could get a competing offer.
Ed Gay said:
I was contacted by a Landman to lease a 181 acres in Houston County 3/16 and 300 per acre signing bonus 3 year with a 2 year extension for another 300 per acre.
He seems to want to get me to sign and has sent me the papers to send back tomorrow, I just talked to him on the phone yesterday 7-24-12 Kind of fast rush thing.
Thanks r w Kennedy:
I have a call to him and after looking at the lease some questions and changes. will see how it comes out.
Ed
r w kennedy said:
I think generally that when the landman is in a hurry, it's in his or his client's best interest and not yours. I think you would be well served if you could get a competing offer.
Ed Gay said:I was contacted by a Landman to lease a 181 acres in Houston County 3/16 and 300 per acre signing bonus 3 year with a 2 year extension for another 300 per acre.
He seems to want to get me to sign and has sent me the papers to send back tomorrow, I just talked to him on the phone yesterday 7-24-12 Kind of fast rush thing.
Did you say where your land is located. And who is try to lease your minerals. Near Austonio the price per acre is higher. Agree with Vernon no 2 year extension. Go for higher percentage in Royalty if you can. Check out Go Haynesville Shale- Example Completion, Houston County in the group District 3 Oil & Gas and read about the activity that is happening in the county if someone hasn't already mentioned that to you.
Native American
Ed Gay said:
Thanks Vernon:
I did try and get him up to 25% but he wouldn't move, said just not a big enough track. It the rush me to sign that's got me concerned, will see.
Got 25% on a 1373 acre track in Dayton Texas, Liberty County, good bonus and they never set foot on the property, hope to see some activity down that way again soon.
Vernon said:First - No 2 year extension. After 3 years either things are going good in the area and they will renew at a below current market value or if things are bad they will not renew. Only the oil guys win.
Second - Royalty percentage out trumps bonuses in most cases. Bonuses are a one time offer. Royalty percentages can last for decades and can be worth many times as much as the up front bonus. Most people are trying to get 20-25%.
Good luck.
Thanks Native American
Didn't see anyone talking names so I didn't know if it was a thing they do here. So if it's wrong sorry.
It's in Houston County and a Mike Bennett independent landman working with Jones & Zwiener, inc. for Devon Energy. Kind of the long way around to get to the oil company.
He is not moving on the 3/16 will see.
Native American said:
Did you say where your land is located. And who is try to lease your minerals. Near Austonio the price per acre is higher. Agree with Vernon no 2 year extension. Go for higher percentage in Royalty if you can. Check out Go Haynesville Shale- Example Completion, Houston County in the group District 3 Oil & Gas and read about the activity that is happening in the county if someone hasn't already mentioned that to you.Native American
Ed Gay said:Thanks Vernon:
I did try and get him up to 25% but he wouldn't move, said just not a big enough track. It the rush me to sign that's got me concerned, will see.
Got 25% on a 1373 acre track in Dayton Texas, Liberty County, good bonus and they never set foot on the property, hope to see some activity down that way again soon.
Vernon said:First - No 2 year extension. After 3 years either things are going good in the area and they will renew at a below current market value or if things are bad they will not renew. Only the oil guys win.
Second - Royalty percentage out trumps bonuses in most cases. Bonuses are a one time offer. Royalty percentages can last for decades and can be worth many times as much as the up front bonus. Most people are trying to get 20-25%.
Good luck.
Your Welcom Ed,
Which part of the county are you in. Its ok to mention names as far as I know. I am new to leasing also. But this site has been very helpful. Don't know anything about Devon. And I probally shouldn't comment on something I don't know that well but I wouldn't be in a rush. Expecially when it is a legal binding contract until the lease expires. What part of the county you are in. Have you looked at the trrc.(Texas Railroad Commission) site you can look at who is permitting a well near your location. Near Austonio is very busy and then around Pennington is starting to get busy.
Native American
I have looked at the trrc. I live in NW Arkansas, born and raised in Dayton Texas. I am new to the page also, not new to leasing have some in Dayton or Liberty county lots of family in that area and own mineral rights to a lot of land down that way. Not much going on in that area it seems. Thanks for the help
Native American said:
Your Welcom Ed,
Which part of the county are you in. Its ok to mention names as far as I know. I am new to leasing also. But this site has been very helpful. Don't know anything about Devon. And I probally shouldn't comment on something I don't know that well but I wouldn't be in a rush. Expecially when it is a legal binding contract until the lease expires. What part of the county you are in. Have you looked at the trrc.(Texas Railroad Commission) site you can look at who is permitting a well near your location. Near Austonio is very busy and then around Pennington is starting to get busy.
Native American