Any body heart anything about the Autry well
Nothing official. Reports from local contact in that area indicates that EOG hasn't done anything in the past few weeks - have moved off some equipment but still have a lot of rental testing related equipment on site.
There is a report on the grapevine that EOG tested the Goodland Lime here at a rate of 100+ BOPD. It is apparent that they tested several zones (frac'd) and I am not surprised if the Goodland would be one of them based on shows in nearby historical wells.
Even though a vertical wellbore test of this rate is positive info (if correct), it doesn't IMO substantiate that economic volumes of O&G can be tapped from that reservoir. But it does give rise to the possibility that EOG and/or other operators will opt to do more drilling and testing in this area/
As always, time will tell
Thanks rockman that is really helpful info/Clint so I just found out this information I don't know the abstract section and block# So Im in okinawa Japan how would I go about getting this info? or would my mom who is there in palestine able to get this info for me?
Yes Sherry, check with your mom and if she doesn't have the info she can possibly obtain it at the Anderson County Clerks Office.
I suppose you are in the military and if you are 'Thank you for your service to our great country'.
Clint Liles
Clint Yes my husband is in the Marine Corps! Thanks for all the information you been a huge help.
I was ask to lease my mineral rights for $250 per acre just to start the lease is this pretty standard?
Hi Sherry,
I leased my minerals south of Frankston for $250/acre. I have heard of some people getting up to $300 though. Where are your acres located?
Lease terms are all about location and interest. And just as important (if not more) is the royalty percentage that is negotiated.
$250 is pretty low IMO with all that is happening in Anderson County and adjacent areas
Garnett,
My grandmothers land is in Palestine not sure of exact location
Rockman-ok wasn't sure if that part I would need to negotiate cool thank you guys for your help
Depending on the size of your lease you may want to consider some legal counsel before signing.
Other issues in addition to bonus and royalty and lease term include extension issues (I.e. additional years at "x" price after primary term expires), surface access and damage issues, waiver of "fees" associated with transporting / marketing O&G ("no cost lease" - you don't get dinged for these fees) and many other issues.
Rockman,
wow I didn't even think about all that real eye opener. Any additional help you can help me with I mean Barney style it for me I am clueless
All I can say is that you need to do some research to check out what your lease is covering. Signing a base lease that is first given to you by a broker is not a great idea - everything in this lease is geared to the broker's (and his client's) benefit.
As I mentioned earlier, the amount of effort that you put into this is directly tied to the size of your block / tract. If it is only a few acres, it is probably not worth the effort and cost. But if tract is more sizable, IMO it behooves you to dig into the details and try to optimize your lease so that you are protected the best way possible.
As in any negotiation, there is give and take. Being too stubborn or wanting too much will just force the broker to walk away. But there is always a mid point that be decided upon.
2 Likes
the full amount of acres is 116 but my shares is only 4 I'm in Japan I can go to base legal maybe they can help me look it over before I sign anything
Using the base legal group is probably a good move to get the info needed to make sure you are getting what you need.
Rockman-So with me being in okinawa my brother talked to the guy he was saying something about 18% depending on how many barrels it produces is that 18 % per barrels of is that total amount of barrels per day it produces?
Sounds like the broker is talking an 18% royalty (probably a 3/16 th's or 18.75% - a common offer).
Optimum would be 25% royalty but one may have to back off the bonus price some to get higher royalty.
The royalty percentage ties to how much you get paid if you lease and your minerals are included in a unit and the well is drilled and productive (which is not a certainty).
Here is a scenario to illustrate this:
You have 10 net mineral acres in a 100 acre unit - or 10% of that unit.
You then have 10% of the royalty for that unit - let's assume that it is based on the 18.75% number we talked about earlier
So you have 1.875% of the revenues for this well.
So if the well is making 100 BO per day and is getting $90 per BO (or $9000 per day in gross revenues (pre taxes and various transport and marketing fees), your share of this is $168.75 (or 1.875% of the $9000 gross revenue number).
You will be paid this royalty percentage on all oil and gas production from the well until it is plugged.
2 Likes
Having been a JAG, I doubt that they will have someone in the office familiar with Oil & Gas leases. There are other things in the lease which can affect how much you get - for instance - they usually put a clause in which requires you to pay post production expenses. Don't do it. Ask for a cost free royalty clause. You might ask if they have a Reserve Jag (back in the States) who knows Oil & Gas.
George,
Thanks for the heads up!!
J Shadrick A-919 Survey. Any information on this survey or activity in the area? I have looked at the GIS map and cannot identify anything of significance but have been contacted for a lease. What formation is in this area?
Thank you
As to activity in A-919 in Anderson County, companies are targeting two different plays in the area.
Goodland Lime is in its early stages in E Tx. JAMEX has drilled a Goodland Hz to the east - poor results but as I said, early on. EOG well near Noonday in Smith County much better. More drilling expected.
To the west and NW of A-919, the Rodessa play has been pretty active with OBENCO making good horizontal wells on the county line and TDX and Tri-C either drilling or permitting Rodessa wells.