Signing Bonus/Royalities

Texas Mineral Rights Cherokee County, TX
1

These forums are very new to me...but I would like to know what the going rate for signing bonuses/royalties are going for in Cherokee County.

Thank you.

2

Celesta,

It would help if you will tell us the Abstract, Section and Block #'s. In other words where in Cherokee County are your minerals located?

Clint Liles

3

I don't know if this is right but Dickerson OU ,002H, 003H and 004H

Outside of Reklaw Texas

4

Celesta,

After some research Dickerson is the name of the 3 Horizontal wells on your mineral acres. The Legal description of your minerals is: Abstract 518/Section 156/ Survey Name-TH Lucky. These 3 Horizontal wells are oil and gas producers drilled by Forrest Oil Company.

This link is for the Completion Report on Dickerson 2H/API 073-31483:

http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?meth...

Completion Report shows 259 BOPD/892,000 MCF gas per day. Good oil and gas well.

GIS Map of Cherokee County A-518/Section 156/TH Lucky Survey:

95a1f2dd603570996712485537156c0d94a554cd.JPG1400×786 111 KB

Link to Production Report on Dickerson 2H:

http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab=init&viewType=prodAndTotalDisp&methodToCall=fromGisViewer&pdqSearchArgs.paramValue=|2=07|3=2014|4=06|5=2015|103=15160|6=O|102=06|8=specificLease|204=district|9=dispDetails|10=0

Clint Liles

5

This is great info and I do appreciate your help.

So what do you think a good signing bonus is and royalty would be?

6

I'm not so sure that all this section is not held by production by the oil company. Is some company offering you a lease? If so how many mineral acres do you own that are not leased in this Section 156?

Clint Liles

7

It is a resign....2013 we signed for 125 and 1/16.

I was told to ask around to see if that is the going rate and that is what I am doing.

I just don't want to be naive dealing with these companies. Forest Oil/Sabine went bankrupt, still have to pay out...I just want to make sure that I ask for the fair price.

8

Possibly someone that has minerals in the immediate area will chime in. $125 and 1/16 are very unacceptable for this area. I personally don't know what the going rate is for this area but if the acreage was mine I would be asking for at least $750 per acre and 20-25% Royalty considering the production that is in the area.

Clint Liles

9

wow! I had no idea...that is why I am asking...

Can they turn me down since they already have well drilled?

When the land man called I told him I wanted to negotiate and he said since oil is so low that we may not get much more than 125.

Do you have any other suggestions?????

10

Celesta Whatley… Am member of this Forum…would like to exchange communication with you about my mineral interest in Cherokee County. Father was a lease hound…his description in the TX & OK oil booms of the 1930’s.

Sister and I want to know more about the deeds he left behind.

John R Rochelle
985.872.0979
Houma,LA
jr6474@gmail.com