I was contacted about some mineral rights I inherited from my grandfather, being leased, I do not know anything about this. Can you tell me anything with the below information. Abstract No. 550 O.037500 Survey Name: Jackson Hardin
Abstract No. 865 0.12500 Survey Name A.M. Quarles
Those surveys are located in the target lease area for Expand (the new name for Chesapeake). Expand is pursuing a deep gas play. Several entities have been leasing for them. Who is your lease offer from? What was their initial offer for bonus, royalty, and length of lease?
Drake Exploration Three-year lease with Three-year option to extend 18.75 Royalty Bonus Payment of $350.00 per Net Mineral Acre
Drake has been the primary leasing agent for Expand. Their initial offer is definitely low…you should be able to get higher bonus and royalty amounts. The 3/3 lease term is typical and you probably can’t get that changed.
Thanks for the information
They are probably going to “flip your lease to Expand/Chesapeake and get an override for themselves, probably the difference between 18.75% and .25% plus get paid for dealing with you and get bonus money from the deal at your expense.
Since I do not know anything about this will it be worth it to get a lawyer to help figure this out. I do not want to pay a lawyer and not really get any return.
I have Gross Acres: 65.00 Net Acres 0.162500 Mineral Interest 0.002500. I do not know what all of this means. Thanks for any knowledge you can give me.
Ask the landman how many Net. Mineral Acres do they intend to pay you for. Don’t sign a lease until they have a cashiers check to give you when you sign in front of a notary.
You own a very small undivided interest (.002500) under a 65 acre tract. That give you a very small interest of .162500 net acres. If you lease at $350/acre your lease bonus payment will be $56.88. If they are leasing an interest this small, it is very likely included in drilling plans in the very near future. The Quarles Survey is just northeast of Grapeland. Probably a great spot to be.
Beats me. Above my pay grade.
A mineral owner got an offer from PeeDee Energy Services for $600/Net.acre, 1/5 royalty, in several Surveys about 4 miles northwest of Grapeland. 3 yrs & a 3 yr option. In JDJ Procella A-69 & Issac Grooms A-443
Pee Dee recorded 23 lease memos in the Houston County Deed Records on September 3. The leases cover 3,800 gross acres in 13 surveys. Here’s a map of the surveys that contain leased acreage:
It looks like this entity is tied to Schoeffler Land Services. We have signed multiple leases throughout East Texas in the past with Schoeffler. I’m assuming the are leasing for Expand, but maybe not. With all the attention this area is getting, I would assume you will eventually see others coming into the area.
