Hello everyone! My name is Anna. I am new to this forum. I have been approached by a drilling company out of Austin about signing an oil and gas lease for 3 years with a 2 year option. It is in the La Rosita rancing community that is located between San Diego and Freer, Texas.
I want to make an educated decision. What is the going rate for lease payment per acre? What is the going rate for royalties? What are the pros/cons of signing vs not signing? What are some points I should be looking to make sure the lease states in it?
If anyone else out there has land in La Rosita, please let me know. I would like to get as much information as possible before making my decision.
The following is the exact description the drilling company has on their contract. I trust this is what you are looking for?
28.5727 acres of land, more or less out of the Felipe Balerio Survey No. 21, Abstract No. 56, Duval County, Texas
Venado Drilling Company is extending the offer. The land man tells me that they are attempting to lease 100,000 acres in a portion of Duval and Live Oak(?) counties. They are offering $150.00 per acre for a 3 year, lease - with a 2 year option - and 20% royalties.
They say if I want in, I need to agree to the lease by January 1st after which point and time they will not be extending anymore offers. I'm feeling a bit pressured to sign it -- due to the short time frame.
I was approaced by the company the second week of December. I am VERY new to this and I don't want to regret having signed the lease without enough research. I'm not even familiar with the nomenclature used in the industry, let alone a lease contract, the going rate, seismic surveys, etc etc...
After pulling up the GIS map of A-56 In Duval County I don't see any production or any activity in the area. To the west of A-56 in A-465 a dry hole was drilled in 1994(API # 131-37973).
A well was drilled to 600' total depth-north of A-56 in A-14 back in 1980. This was an exploratory well for uranium drilled by Aquintaine Mining Corp(API # 131-35317)
You might be wise to take what has been offered by Venado Drilling Co. Am including a map of A-56 and the surrounding area. Good luck with your lease.
