I am hearing from a couple of Dimmit County residents that the court house is full of landmen attempting to lease all available lands. Any observations on this is appreciated.
I have also noticed multiple parties expressing interest in leasing my available lands.
my specific interest is in learning more about what is happening in the northern third of Dimmit County and what current economics are to lease on a three year, 25% royalty, paid up lease. This would include all depths with the exception of portions held by production.
I just leased some land in that area for $1,000.00 per acre, 25% no cost royalties, 3yr paid up lease, and the lease is to a certain depth, i.e. does not include all depths. I have some more land that I am in the discussion stage. Offer started at $1,500.00 and I want a minimum of $1,800.00. Hope this information helps you.
Thank you Mr. Eardley. How much more muight one expect to have all depths?
Since I have done this lease I will do my best to keep to certain depths because I have read, believe and heard that there is going to be another lease push like in 2009 & 2010 in a year or so. If I do decide to lease all depths I would ask for at least triple the amount. But of coarse, it is all in what you can get during negotiations. I expect lease bonuses to go up and not down like some people are trying to portray.
I too think that the demand will be substantial in the not too distant future. I guess what we all want is for the companies to drill and develop our lands but none of us want them to hold lands that are not producing.
I would assume your lease excludes the deepest formations and most likely includes the Eagle Ford and maybe the Buda. It seems like the oil companies need to commit to the depths they want but only those.
Thank you for sharing your thoughts and good luck on your most recent lease.
At this point I'm not sure why I haven't been contacted for a mineral rights lease, but I know some of my neighbors have leases with Chesapeake, etc. It may be because I only have 20acres (along Hwy 83 between Asherton and Carrizo), or maybe of a mineral rights owner issue. As far as I know, I have mineral rights, but I want to make sure and am looking for a reliable person or group that does title/mineral rights owner searches in the area. Any suggestions? I don't live in the area and it's difficult to find good sources. Thanks!!