Hi, hope this isn’t off-topic. My family owns mineral rights in the corner of Leon county where it meets up with Anderson & Freestone counties. A contractor for Surprise Valley (for Comstock) wants to negotiate a lease with us. He seems very worried that somebody else also wants those mineral rights. Before I go plowing through the permits, any guesses as to who that “somebody else” might be? Thanks in advance for any help.
The other major group leasing in that area is Sabana Royalty Partners/Vanna Production. Thorp Petroleum is another player who began leasing on their own, but have now begun assigning their leases to Sabana/Vanna.
Unlike Comstock, this group has not revealed any drilling plans yet. It remains to be seen if they will pursue drilling or sell out to Comstock, given the low level of current natural gas prices. Both groups are chasing the same target: Lower Bossier/Haynesville.
1 Like
Thanks for the info. Any ideas on how to contact Sabana or the reps of the Wilks bros?
There are many, many speculators trying to buy, or lease acreage that they think they can “flip” and get an override from a Company like Comstock. If I were you I would be very cautious whom ever you deal with. $850/net acre, 1/4 cost free royalty and a maximum of a 3 year lease with NO OPTIONS! A good lease form is a must. Surprise Valley is a lease broker mainly for Comstock in the play. I would not pay any attention to what the landmen say. It is not their decision. Location, Location, Location is most important along with a good lease form. It’s a lot more complicated than just this.
No option makes sense, now that you mention it: if there’s no gas they won’t renew, if there is gas, you’re in a stronger negotiating position. I’m thinking after the gas is gone or even if there’s no gas, these wells will be perfect for geothermal, assuming that doesn’t cause some catastrophe. Hoping royalties will be required for geothermal; don’t know the rules yet. Any thoughts on leases for geothermal?
1 Like
Has anyone heard of any leasing south of hiway 7 east of centerville. I have a couple of meetings with solar power people interested in putting up solar panels. This company has solar farms all over NE Texas.
Usually there are more than one formation capable of producing oil, gas and liquid hydrocarbons. If a company drills 20,000 and produces at that depth they will try to HOLD or HBP every formation above that depth. But there are remedies. You can put in your lease to release every other formation above and below the production zone at the end of the primary term of the lease. New technologies for producing are being developed all the time. Don’t deed them your mineral rights with a sorry lease form.
Another good tip. Thanks! Guess I’ll be spending the weekend reading & comparing leases carefully. Might need to find a mineral rights lawyer who owes me a favor 
1 Like
OK, time for the really stupid questions: why doesn’t the initial bonus payment appear in the oil, gas, & mineral lease? Am I just an idiot? Also, does anyone have examples of what they consider “good” leases & memos? I’m not a lawyer, but the ones I’ve seen so far look like complete garbage; can’t imagine that any lessor would sign such things.
This topic was automatically closed after 90 days. New replies are no longer allowed.