Hello all....I have a lease with Energen just south of Garden City (13 miles) and have seen some new drilling in the area....this would be section 31 / block 33...I know Apache is in this area along with Energen. Does anyone have any info update on this area and if new wells are starting production ?....much appreciated...I will be out in the area next month (Oct 2016) to see what activity is going on in this section..
Any info on what lease extensions are going for in section 31 / block 33 ?....Apache is in this section. My 3 yr lease with Double Eagle is up next spring and wanted to know what to expect for NMA bonus ($500 - $600 range per NMA ?)....
Anyone out there heard of Ridge Natural Resources, LLC trying to solicit mineral leases ?...they are out of Beaumont, Tx..
I've recently learned that my siblings and I are heirs to 480 acres and mineral right, located in Glasscock, TX. I believe API: 17331411, 17331956, 17331458, 17331301 are located on this property. My mom, the original owner died in 1992. How can I find out if these have or are producing since then?
The first two are producing and the second two are not. That doesn't mean the second two haven't accrued some back runs. You need to contact Legacy Reserves Operating, LP and ask for owner relations. Be prepared to provide them with probate on your mother. If you need further help feel free to email me at [email protected]
Thank you James, am working on Trust info. This makes me hopeful and gives me some idea as what to do.
You should also check your mothers name in unclaimed funds in the state of your residence as well as in Texas. Most trust are created through wills therefore Legacy will require you to file a certified copy of your mothers probate in Glasscock County, if you are out of state the probate will have to be exemplified and certified. Just another fee and another stamp/sig.
Anything new going on in this area?
Section 2, Block 35, T4S, T&P Ry. Co. Survey, Glasscock County, Texas
Section 46, Block 35, T3S, T&P Ry. Co. Survey, Glasscock County, Texas
Section 44, Block 35, T3S, T&P Ry. Co. Survey, Glasscock County, Texas
Hello Jean and 'Welcome' to Mineral Rights Forum. At this time I don't see any fresh activity in the area of your minerals. Some of the last wells were drilled by Diamondback E & P in this area. This is a good area to have minerals. GIS Map of Glasscock County/Section 2/Block 35 T4S//////Section 44 and 46/Block 35 T3S:
CLICK ON MAP TO ENLARGE
Clint Liles
Thanks Clint, my mom passed in 1990 and we just switched her mineral rights a few years ago. My great grandmother bought these so many years ago and the interest has been divided to a minimal amount. I'm thinking of selling (over 20 wells) but unsure of what the future means with this area and production. I'm not even sure how much land we have the rights to. It's really hard to get information since I live in Madison, Wi. Enjoy seeing the map. No idea how much to sell for...
Thanks Clint, I've been doing a little research and finding out how involved selling can be. I had no idea how much is involved and how innocent I am with this whole process!
Good Morning Glasscock Group,
Hey I thought I would contact you for some advice on a new deal that has come our way. Maybe you have dealt with a "top end lease".
The deal is with a company SF Resources out of Dallas. They want to lease the top end for now of a 220 track in Glasscock Co., at $2000 per nma, 3 year and 25%. This acreage is currently leased by 3 Rivers which hasn't netted us anything as far as I can tell from Mom and Dad's records.
What is a top end, any pitfalls to look out for suggestions?
Thanks for being here and appreciate any advice, Kelly
Hi Kelly,
A company takes a top lease when’s they think the lease hat is currently in force will expire - and they want to get a lease on the acreage that is effective when that happens. The top lease only becomes effective if/when the existing lease expires.
The first thing to look at is whether your existing lease has any requirements about notifying the lessor if another company makes you a top lease offer you are considering taking and giving the lessor the option to match the terms. This has become fairly common in company forms in recent years. If such a provision exists, then you may need to think about how to proceed.
If there isn’t an anti-top lease provision, then the question is what is the top-lessor offering? Typically the initial offer is to pay 10% of the bonus at signing and the other 90% when the top lease becomes effective (if/when the existing lease expires). Is that enough? Do you want to lease to the top-lessor? Would you be better off waiting for the lease to expire and leasing to any other company? If the area is hot and lease prices are rising or you aren’t sure about the quality of the top-lessor as an operator, then you may be better off waiting until the lease expires and you are a “free agent” that can lease to anyone.
If you’re going to do the top lease deal, try to get as much bonus money up front as possible and negotiate the lease terms just like you would a normal lease - don’t just take their top lease form.
Good luck and let me know if you have any additional questions.
Best, Eric Camp
1 Like
Wow Eric,
Thank you that was concise and easy to understand. I really appreciate the advice. In my reading on top leases's they overall sound like more trouble to do as an inexperienced new comer. One I do have an old copy of the lease from Mom and Dad so I can check the language but it sounds like these deals are tricky to get paid and perhaps better to wait until I am a free agent.
The current lease as I said hasn't shown any payments since the lease was signed 2014 and that expires this July.
Kelly,
If they're interested now, they'll be interested in July when the existing lease expires. Yes, top leases can get ugly. But they can also net Lessors some extra money if the existing lease ends up staying in force through drilling. It certainly won't hurt you to wait until July if you're concerned. Good luck!
I think you are correct and I will follow that suggestion after looking over the old lease. I also want to check out who this Operator is. I asked him to put in an email his terms offered and company name so I have that in writing. I will keep you posted.
Be careful that what is described as a "top lease" is in fact a conveyance of 3/4 of your royalty interest under a current Oil and GAs Lease. Ridge Resources has acquired several of these in Glasscock and other counties, as I discussed in a post by Jim Millsap in this Glasscock group.
Kelly- A well has spud in section 29 by Apache so the top-lease would have just been free money. From my experience, and everyone on this site should know this, its not those offering top-leases to be weary of, it is the operators or their brokers offering "addendums" or "ratifications" to just amend the primary term for a certain amount of days or to extend it a couple days so that they "can drill a well for you, and make you money" without compensating you...they wont even mention the words "lease" or "top-lease"
Patrick is spot on. The amendment or extension is just losing out on money plus you know for sure they are very interested so you have leverage. A top lease is a group that’s willing to risk considerable amount of money with no guarantee they will even get a shot a leasing.
Some of the older generation think top leasing is wrong but it really the only proactive solution to compete with the big dogs. In fact, top leasing is normal in the Permian. It’s so competitive it is one of the few ways to get to play ball.
I just received letter from Parsley Energy, wanting me to sign a letter starting my ownership percentage in 480 acres. They are saying they believe my decimal interest is 0.00001205. My estimates are .3174603175. However I never received confirmation. It appears they already have some sort of agreement and that they are simply trying to identify the owners and interest. Any comments? Thanks. Kevin