Looking for any information or experience regarding leases for vertical drilling brokered by Santa Rosa out of Corpus Christi, examples such as bonus rates and royalty percentage on 100 acre tracts.
Have not heard of this group. Vertical drilling in Karnes would most probably be tied to southern part of county and non Eagle Ford targets (e g Wilcox)
Rock Man said:
Have not heard of this group. Vertical drilling in Karnes would most probably be tied to southern part of county and non Eagle Ford targets (e g Wilcox)
Thanks for the information, Rock Man. The proposed drilling is in Karnes County. It is concerning that this company is not known in the area. Maybe they are active in other areas of the Eagle Ford?
Being in the vertical side of the world, I can say top dollar for a conventional is usually around $300 an acre and 18%. It can go higher of course if the project is right. Just make sure it is conventional only in the lease.
The company name doesn't really matter, it could just be a new venture. If you can find out the principles and consultants of the company. That's the important part. For instance if the company has only been formed for six months, but its principle partners have been drilling wells since the sixties and just left major oil companies to start their own (I see it all the time) that would be something to take a look at.
Bob S said:
Thanks for the information, Rock Man. The proposed drilling is in Karnes County. It is concerning that this company is not known in the area. Maybe they are active in other areas of the Eagle Ford?