I have been offered a $100.00 per acre signing bonus and a 3/16 royalty for a lease on sections 399 and 400 Hardeman County, Texas that I have a partial interest in . Does anyone know if this is a fair offer?
I moved this over to Hardeman County for you. Hopefully, folks that are watching that area can help.
I am new to the site. Thanks for your help.
Low in my opinion…
Oscar, one of the landmen that work that area of Hardeman County told me that some of the wells in that area are less than spectacular so I suspect bonus’s would run from about $200 to $300 per acre…but that would depend if the company/producer was to be drilling vertical or horizontal wells…so far only vertical wells have been drilled. JUST MY OPINION
Multiple horizontal wells have been drilled and completed in Hardeman.
Bruce I agree that horizontal wells have been drilled in Hardeman County and some of them are good wells but in the area of Sections 399 & 400(Southern Hardeman County) only vertical wells have been drilled and the latest activity seems to be by Buffco.
I was called by a land man at the end of November last year about leasing the mineral rights I have in Section 79. A few days later he called and said that a contract would be sent in a week or two with the terms $400/acre 3/3 20%. He said that it would have a Pugh clause and be very “owner friendly.” Then, poof, he disappeared. The price of oil was falling rapidly around that time. Clint, what do you think that was about? If it was a scam, I don’t see the angle.
Steve…with the price of oil falling at the time it could have scared the investors to withdraw their support if he was leasing for a small oil/gas operator. Do you remember the company he was leasing for? I wouldn’t say necessarily that was a scam. There are some decent Miss. wells just to the south of your acreage. Don’t give up…there are about 4 productive zones in the area. I don’t see where there has been any exploration in your area for a long time.
GIS Map of Hardeman County Section 70/A-458:
DOUBLE LEFT CLICK TO ENLARGE MAP
Steve…Has seismic been performed on your acreage?
Exactly the area I own (a part of) is the northwest corner of sec.79 (160 acres.) I don’t think seismic has been done there. The land man who contacted me said he couldn’t disclose the company he was inquiring for, but it was a Fortune 500 corporation. Me, my sister, and a cousin own all of Sec. 92 and have the Davis well in the far southern part of that sec. That has been producing for about 25 years. Unfortunately, since I inherited it, it flows about 5 barrels/day. Recently, my checks increased substantially, and I found out from the operator, Ratliff Oil, that he drilled down deeper in the same well, and found more oil. It flowed, at first, 50 barrels/day, but it’s tailed of pretty quickly to 20-25. No one has ever contacted us about anything north of that well in sec. 92, but we get interest in that NW corner of 79 occasionally for some reason. The last offer didn’t include a Pugh clause so we turned it down. Until you posted the map, I had no idea so much drilling had been going on south of us.
This link is to production data on the Davis 1E well/API 197-31271:
To view all production on this well manipulate the begin ‘Date Range’ back to Feb. 1994 and click ‘Submit’.
After further examinaton I see where there are 8 possible productive zones in this area…Chappel, Conglomerate, Osage, Strawn, Bent Tree(6350’), Ellenburger, Palo Pinto, and Atoka. And yes, a Pugh(depth) Clause would come in handy on a lease in this area.
GIS Map of Hardeman County Section 92:
DOUBLE LEFT CLICK TO ENLARGE MAP
Clint, That link you sent was fantastic! I never knew such information existed. Once the new drilling was completed in December, the Davis started off at 50 b/d then receded to 25 b/d in 3 months. I don’t know what new zone was found, only that it was deeper. I was told that if it went to under 15 b/d that fracing was going to be considered. I was told that that was risky because of the water potential. You have any thoughts that the well could be drilled even deeper and find more oil?