I recently received a lease offer from a company named Xplore Oil & Gas LLC for some mineral rights that I own in Parker County. I last leased this in 2008 and the lease expired in 2010. The offer seems to be quite low as it is significantly below what I leased it for in 2008, and WAY below leases that I recently exercised in Reeves County. (I know that Reeves County is extremely hot right now, so that is likely not a good comparison). I would really appreciate it if anyone could tell me anything about Xplore Oil & Gas (and whether they are a legitimate operator), and also any recent information on what leases are going for in Parker County these days. Thanks a lot.
Xplore has a website with company information. You can go to the RRC website and look under Data On-line Research and then Organzation (P5 Query) to see if a company is listed as an operator. Keep in mind that some companies do not operate but either have an affiliated operating company or prefer to participate as non-operating working interests. Xplore operates quite a few wells in Jack, Wise, Parker and Eastland counties. It has permitted 4 shallow wells in Jack County since January 1. It is not a horizontal driller and so you can consider limiting the depths in the lease.
https://xogllc.com/
Thanks for the information. If anyone has any knowledge of what leases are going for in Parker/Tarant counties, I would very much appreciate it.
Did you ever get any more responses. We’re seeing the same thing…but I don’t know what current values are.
No. I never heard anything else about current values. However, Xplore was only offering $75/acre for a three year lease with a two year option to renew, and only 3/16 royalty rather than the 1/4 royalty that is pretty much the current norm now. I previously leased the same property in 2008 for $500/acre for a two year lease. I contacted Xplore and told them that I had received much more in the past and with a better contract. They responded that they could not make any adjustments because the price of gas is much lower now than it was then. I then advised them that I (and relatives who also own an interest in that property) were not interested in leasing at such a low rate, but we would be willing to negotiate. They never replied to my last communication. I would note that I learned some years ago that if you are a minority stakeholder in these properties (and do not own the land), the companies can drill without having a lease with you. However, if it is a successful well(s), you are entitled to 100% of the return based on the percentage of the mineral rights that you own with respect to the whole property that is under lease. The caveat is that you don’t receive any royalty until the cost (again percentage wise) of drilling is recouped for your particular interest. Of course, if the well is not productive, then you get no royalty at all, nor do you get any lease payment, but you are not responsible for any of the drilling costs. I decided some time ago, that this would be preferable to signing a lease that does not provide a reasonable rate of return and pretty much is a give-away to the operator.
In what part of Parker County is your land located?
I am not sure where the property is physically located. Tried to find some information on the Parker Co. County Clerk’s website, but was not successful.
The property description is 120 acres, more or less, out of the D. Cearly Survey, Abstract No. 2201 and the J. Bullard Survey, Abstract No. 2189, Parker County, Texas, recorded in Volume 309, Page 402 Deed Records, Parker County, Texas.
This link will open the Texas RRC map viewer on a well which was drilled in a section adjoining A-2189. A-2201 shares A-2189’s west section line. Use the magnification bar on the left side of the map to zoom out one click. A-2189 is above A-2190.
Thanks for the help. Now I know approximately where it is.
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