Hey Carol,
that many acres I would ask for 300, plus the 2 year option, I would ask for 325,350, what happens in 24 months when oil is 95 again they have you locked in to 250 when others may offer you 500. they will take it
Hello,
I got a call and offer to lease in the north west area of Dawson (Block M) recently. Anybody else seeing activity there? If so, what’s the going rate and terms?
Thanks!
C P,
what was the offer? how many acres? I have production in block 34, I have 2 areas in block 35, I think the going rate is about 300 per at 20/25%. who Is the Co.? I have a good friend in Midland that has his own Oil Co and I can ask him about them. let me know.
I would make them honor the first offer, I am not sure if there is a lot of flipping going on right now, I will send my friend a e-mail about these 2 CO, I will let you know what he says. Google search does not show much my friend John will be able to give me a lot more info I would bet, I will let you know
Mr Rogers,
It’s in Section 73. The offer is a little confusing, on the phone he said $350 for 1/4 and in the offer he sent it says $250 for 1/5. The company that approached me is H&S Permian, leasing for Steadfast Oil & Gas. I suspect they might be flipping. Just thought I’d ask here before I started the negotiating.
Thanks.
WARNING!!! STAY AWAY FROM AUGUSTA ENERGY!!! NO IDEA WHO THEY ARE!! offered us a lease we agreed and they asked me for a lot of info and then vanished, refused to answer e-mail or text STAY AWAY
Has anyone had a POSITIVE experience with a royalty lender?
Has anyone done business with Peoples Royalty Lenders?
Ronnie,
Tread Carefully! Generally, interest rates run about 18%. There is a "loan origination fee of 3% or $500, whichever is greater, added to the principle balance (if you don’t pay it up front). So, if you take out a $10,000 loan against your royalties (They will loan you up to 26 times your monthly royalties), with a term of 48 months, you will pay back approximately $14,805 at 308.44/month. If you don’t roll the origination fee into the loan, you will pay back $14,600 ($14,100 plus the $500 origination fee). If the interest is compounded more often than monthly, these figures could be higher. The loans also involve a “Note” and “Deed of Trust.” I believe Texas allows a “Power of Sale” clause. I blasted this out quickly so it may not be that accurate but I would not jeopardize your mineral interests. There are lots of knowledgeable in Mineral Rights Forum who can give you better options.
Mr. Vinson
Did you look at the company or is this a take on other lenders?
just curious .
Thank you for your reply Mr. Cato
I glanced at their website, but I have no experience with this type of lending. Those were more or less my uninformed impressions of royalty lending generally. They may be a reputable company, but I really do not know.
I’m having a hard time trusting anyone Mr. Cato.
The people at Peoples Royalty Lenders are the only people that don’t seem to be total thieves and they are still high. 3% origination and 16% interest. rolled into loan.
Still mush better than the thieves at Royalty Lenders overall who want to take control of the property and give you what they think you need.
Ronnie,
I just cannot think of a scenario where this would be a good idea. To me, this sounds a lot like pay day or title loans, which are generally a very bad idea, unless you one of the unfortunate groups of people who do not have access to any sort of traditional capital. A mineral owner is not typically one that falls within that group. There are many factors that could turn this into a nightmare, like O&G market volatility- like $20 oil… I would think there would be much better options than rolling the dice with a royalty lender.
Mike
Thank you Mr.Vinson
Sort of out of options and I’m not going to lose my income over some POS tax assessor thief.
The bankers I deal with have pleaded ignorance and refuse to help. Sort of typical for a conventional banking system of Credit Union I have found.
The price has been down long enough that i have no room.
Liberal fools blocked property tax reform when it was presented and it was presented poorly in my opinion.
Teh legislators from south Texas Border have tried to stop ANYTHING Abbott does.
Your opinion coincides with mine.
Thank you Mr. Vinson
Hi ANDRA,
I the surrounding area of Section 25 I don’t see any activity but there is production in Section 25 and in the immediate area. In Section 25 I find 3 plugged oil wells and 2 dry holes from the past. I also find 1 producing well that was completed and production started in September 2006. This link is Production Data on that well, 33047. Manipulate the beginning date back to September 2006 to view all production on that well.
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab…
As far as bonus money per acre I have no idea. I would have thought some of the Dawson County members would have chimed in by now. John Cundieff can you help this lady?
GIS Map of Dawson County Section 25/Block 34T4N/A-52:
CLICK ON MAP TO ENLARGE
Clint Liles
ANDRA,
I just did an evaluation in Southern Dawson yesterday. With what I found going on west of your land, I’d say you are on the edge of strong development of deeper zones by horizontal drilling. Be patient, lease bonuses could be 2x to 4x your offer as they are in Martin now depending of course on location.
Gary L Hutchinson
My family owns mineral rights on property in Ackerly, that spans both Dawson and Martin counties.
We have had a leasing offer of 300 per acre for 3 years. Is this the average oil lease bonus at this time and for this number of years.
The last one I signed was at 1050 per acre for 3 years in 2014.
Gary,
Thanks for chiming in. Your knowledge and experience is appreciated.
Thanks again, Clint Liles
Um that’s pretty darn low. What is your township and range?