Dusty,
Thanks for the info. Yes, this thread hasn't been active for awhile. But, activity appears to be picking up in the area. Maybe more will join in here. I like keeping informed. I appreciate the info. I'll try to keep you updated too.
Thank you!
Don,
I'm going to send you a friend request.
Got some information I'd rather share by email.
Thanks
I still follow what's being said so you're not alone. Just hasn't been going on in our neck of the woods.
Lauren,
Thank you for responding. Good to know some are still monitoring.
-Don
You and Dusty are being very helpful. I appreciate your involvement!
RRC shows Geosouthern reported monthly production for January from their Fowler well, just north of Burton, of 290,527 MCF with 2,746 barrels of condensate. That average of 9 million CF/day is 3 times the rate their potential test had reported and 89/BPD looks better than the blank spaces they had been showing for liquids, but that part still doesn't seem to fit the kind of tank battery they had built and all the leasing that's followed that well.
Dusty,
Just wanted you to know that we signed with GeoSouthern last night. 3 year lease with two year option at same bonus rate with 1/5 royalty. So, me and all my neighbors in Southwestern part of Washington County are leased with GeoSouthern.
Thanks. Glad to hear it.
If you don't mind saying, what did you get on the bonus?
GeoSouthern paid us a bonus of $300/acre. They raised it from the initial $250/acre.
Thanks Don. Glad you got it worked out.
I purchased 10 acres near Burton 2 years ago and received a call from a landman wanting to lease. I was not interested at the time. Again recently, I received an offer wanting to lease. The lease papers say Esquisto Resources II, LLC as lessee, but the landman works for Costa Petroleum & Land Services, Inc. What is fair as far as bonus and royalties? Offered $400/acre and 21.5%. There are a lot of things I don't like in the lease, but some wording I don't understand. I have browsed the mineral rights website, but still don't understand all of it. If anyone has words of wisdom, it would be greatly appreciated.
Jeannie,
We will need to know the Abstract #, Section and Block to see if there is any activity or production in the area. Location in the County can make a big difference when negotiating a lease. Possibly one of the County Members that has minerals in the same area has also been contacted about leasing. The Austin Chalk Formation seems to be one of the main targeted zone in Washington County.
Clint Liles
Thank you,
The information is A0007 A0007 - Austin, Stephen F., TRACT 29, ACRES 10.03.
I am interested to know about leasing activity in North/Northeast washington county. I have 24 acres 3 miles northwest of Independence on clay creek lane. I spoke to a landman out of San Antonio on the phone. Unfortunately the name of his company and the oil company he represents escapes me as I did not write it down. This is the 4th approach I have had over the last year. He indicated that he was sending a lease proposal with $1000 per acre and 1/5 royalty. When I get the name of the outfit with the offer in the mail I will comment with this info. I would like to hear about others experience with the negotiations. I am also interested to hear more about the no deduction clause negotiations.
Craig Baker
Craig
I'm guessing the company from San Antonio was Blackbrush O&G who also has Todd Weiss and Paleo O&G leasing for them. They recorded several leases in your area in August but nothing since then. Blackbrush was later getting started on leasing in WC but supposedly has paid some of the highest bonuses. Before committing to anything you might want to see if GeoSouthern or Esquisto (land company for Wildhorse Resources) are interested since they probably control the most acreage in Northern Washington County.
Most of the recent drilling has been further west in the Burton/Longpoint area but GeoSouthern just finished a well a couple of miles south of Gay Hill so things may be moving your way.
Since you have a small tract it might be worth contacting neighboring landowners to exchange information on lease offers and see if they would be willing to negotiate as a group.
Dusty
Just read your helpful reply to Craig. I am also a Craig but a different one! I have just under 100 acres east of independence and South of Brazos and 159. I got a call from a landman with a non firm offer of 800/acre bonus... I have little idea if this is in context or a good price because as you said it seems like I am further west of the current activity.
Any advice? Maybe should just call the two companies you referenced?
Craig P.
What survey/abstract number are you in? It might also help to know who contacted you. If you would rather not say online send me a friend request.
We can see if anything has been recorded around there. Companies starting to lease in a new area sometimes accumulate a lot of leases before recording anything and then record only lease memos showing the term but no other details. Bonus and royalty amounts can vary a lot between areas. The only way to learn those details is by talking to others who have already leased in your area.
Lots of leases were signed in what now appear to be more active parts of Washington County at a lot less than the bonus you mentioned and the higher rates seem to be limited to areas where multiple companies have ended up competing for limited remaining acreage.
As a starting point you could ask the person who contacted you to email you a proposed lease so you can see the details but also say you need to know who you are dealing with. I don't see any reason not to also find out if GeoSouthern, Wildhorse/Esquisto or Blackbrush are interested.
It's been pretty quiet on this site but if anyone is still checking it looks like things have heated up on the west end of Washington County. Counting 4 permits Geosouthern applied for today there now have a total of 11 new horizontal wells either completed, now drilling or with pads built waiting for a rig, all within about a 3 mile radius centered around the Greenvine area. GS is currently drilling on a location a little west of FM 2502 and has two more wells programmed there. They've also finished a pad south of Burton off Mill Creek Road where they plan to drill three. At the same time Wildhorse has recently completed three wells near FM 390 north of 290, and Enervest is moving a rig in on a site at the west side of 290 as you go into Carmine.
Dusty
My property near valley forge and Clay creek in Washington County is being sought by Wildhorse and others. Where would I go to get production information for the completed Wildhorse and Geosouthern wells. Wild horse has leased the mineral interests in my property already.
Craig W
Craig
So far the activity has been a ways west of you. Wildhorse hasn't filed any completion reports yet so the only source of information is from their presentations and press releases.
They released a year-end operations presentation a couple of days ago that included some information on two of the wells they just finished over on 390. The report is on their website under Investor Relations.
It said the Lillie Hohlt #1H, the big pad that fronts on the north side of 390, was completed 11/19/17 and had 30 day IP of 2,604 Boe/d made up of 66% natural gas, 31% NGL's and only 3% oil.
They said the Brollier AC #1H, that's a little further north and drilled from the same pad as that old SM Broiller well, was completed 1/18/18 and had 24 hour IP of 2,580 Boe/d. The only breakdown shown on that one was 10% oil. It had a 1,000' longer lateral than their previous wells up there.
Those sound like good gas wells but with not nearly the liquids they reported in their Winkelmann well on Oevermann Road west of Burton. They'd said that one had 30 day IP of 2,387 Boe/d made up of 26% oil, 38% natural gas and 36% NGL's.
The presentation included what they called a "conservative" projection of 53 additional locations based on 15,000 net acres I guess they consider to be proven by the three wells they've drilled so far, and said they expect an additional 85,000 net acres to have development potential.