Hello, and help! I’m new to Rusk County leasing. I received an offer to lease a small interest I have in the Cordova Survey, A-7, close to New London. It’s a 20% royalty with a $200/nma bonus, 3-yr term with a 2-yr extension. The company is RFE and they’ve recently drilled 8 wells to the east. They plan to drill horizontally to the Cotton Valley. Are these rates competitive? I’ll push for a Pugh Clause and No-Cost Clause, too. Any idea when somebody will drill to the Haynesville? Gratefully, David
Anybody out there?
Hi David,
We have a small interest in a couple of TGNR leases (all cotton valley wells) up in the NE (near Tatum) area of Rusk County. The leases are old and show it, 1/8 and 1/6 royalty. These are all old cotton valley wells that were Last drilled, re-entered and/or stimulated by Anadarko and Samson in the late nineties, early 2000s. The wells are depleted and I keep thinking that TGNR will come drill in the Haynesville but no word or permit. I believe that Aethon has drilled a few good Haynesville wells WSW of Henderson. (I had heard of this on here some time back). Can’t help w the lease but Roaring Fork is a good, strong Independent. Best Wishes..
Thank you!
1 Like
RFE has filed 7 horizontal Cotton Valley permits in Rusk County since early 2025, all 10,000+ foot laterals. They’re running a systematic development program, so the offer makes sense. They’re filling out acreage ahead of the drill bit.
On the Haynesville: RFE isn’t the one who’ll drill it. They’re a Cotton Valley operator. Aethon is the Haynesville player in East Texas, and Baylor is right that they’ve been active WSW of Henderson. Whether they move into your section depends on how far east that program extends.
The Pugh clause is the right ask. What does the draft lease say about post-production deductions?
It would be wise to get an attorney’s help in drafting the lease. You have many clauses to be concerned about., not just those two. Most would want a 25% royalty and no extension just to start. Just because a clause may say it is no cost, the body of the lease needs to be read as a whole to make sure that it really is one. The terms of sale are critical.
Thank you, so much!