I read Bubba Smith's comment below and I was wondering what the royalty interest percentage was per acre. What would you think the price per acre should be if I were to sell my land with the royalty interests and what I have is .0625% or 1/16 per acre?
Jack, my comment was a year ago. There is very little land left to lease in Central to Northern Crimes and Southern Madison, if any. I have heard leased minerals are going for 2000+/acre with a 1/5 to a 1/4 royalty. Now if you're talking about selling your mineral rights and not leasing them then you should be asking much more than 2000 an acre. Your mineral rights hold from the surface to the center of the earth and this area has multiple productive zones, meaning a company can drill a well and complete it at say 10,200' and then down the road when that reservoir is drained they come up the hole and re-complete at say 9800' and repeat the process again at a shallower depth. This area is rich with oil and gas in at least four different distinct formations (Woodbine Sands (Eagleford), Budda, Georgetown, Sub-Clarksville, Glen Rose) All these formations have produced at one time or another in the past and currently. I have a good buddy with a company who is invested in the area. I would find yourself a good oil and gas attorney if you are serious about selling the farm (all your mineral interest). Good Luck!
Bubba,
Thanks for the info below, but it is off my beaten path somewhat. I have the non-participating royalty interests. Although the oil company has to send us a waiver to allow them to drill deeper if they want to go deeper, like they did in 2000. But we still have a NPRI (according to our lawyer).
And he was the one who let us know that the original lessor went off from the lessee in 1952 and gerrymandered the unit so that instead of 1/8th RI, we would get 1/16th for our 320 shares and /32nd for the remaining 320 ac in the unit. Using your formulae that your taught me last night that means we have 30 acres at 100% royalty interest. We could say we are stupid enough to want to sell these for $25,000 per acre divided by the 320 ac. - $2343/ac. plus the price of the land.
Bubba Smith quote: "I have heard leased minerals are going for 2000+/acre with a 1/5 to a 1/4 royalty."
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Do you happen to have the names of some of these E & P/Drillers who paid this much per acre in Grimes?
Thanks.
I am a mineral rights owner. Does anybody have any recent information about development, leasing, or offers to buy in South Grimes county (East of Navasota, North of Hwy 105)?
Captain Skittles: be careful...$2000/ac for 1/4 royalty. That sounds like the "wolves" calling that so many, many people have been talking about on this board.
I know this much from having talked to a Land Broker in Grimes County. No one is leasing their land, and he said that no property was being sold that included the royalty interests in over 35 counties in East Texas. She and others are all keeping their RI in the family so to speak. I know one young lady who had family in Grimes and Madison County and she gets about 50 checks a month for as little as 1/128th interest and she is getting almost $3000 per month in royalty payments from all of her long deceased relatives who left her something in their wills in the form of a royalty interest.
This board is followed closely by landmen who want to offer nothing for something that will pay them handsomely for a long time, and the real exploitation of the Eaglebine, Georgetown and Austin Chalk has not really started as of yet.
For those of you who keep up with national news the number of foreign tankers entering our ports to offload crude has dropped significantly. Of course Russia is raising hell for who knows what reason about the U.S. wanting to become energy independent. It seems we are pretty close to the mark.
Jack wrote: "be careful...$2000/ac for 1/4 royalty. That sounds like the "wolves" calling that so many, many people have been talking about on this board."
The $2000/acre had me "howling" for sure. That's quite a bit of money; the most I've heard of anyone getting in the Iola area is in the $700/acre dollar range. If someone actually got $2000/acre, I sure would like to know who the Lessee was. And you're right about landmen wanting to offer nothing for something. I guess that's why I'm not leased.
My names is Sharon and I am new to this forum. I own mineral rights in Grimes county and have leased them to CML Exploration in Austin TX. I began receiving royalty checks from CML on 2 oil wells, Kagg1 and Kagg2, in August 2012. My check in October 2012 was for $5000.00 based on oil production from both wells at 15,792 and 19,473 respectively. By April 2013 my check was barely $2000.00 based on oil production of 4,992 and 5,152 respectively. I talked with someone at CML and he did not seem to be concerned and even offered to buy my interest if I wanted to sell. Is it possible for oil production to fall this quickly? At this rate I don't expect the royalty checks to last through 2013. I'm wondering if anyone knows of any problems peculiar to Grimes county or CML Exploration. Any information offered would be appreciated.
Hi Sharon, welcome. I, too, would like to know the answer to your question because it seems to be common theme with many on this board dealing with drillers and royalty checks.
If they drilled into a shale formation, it is not uncommon for production to drop 50-75% in the first year and then level out.
Thank you guys for responding. Hopefully it will start holding.
Hello,
Hello, I have property and mineral rights in Grimes County - about 85 acres in the B.B. & C.R.R.Co. Survey in Singleton, Tx. I have several questions. The minerals are currently leased by Energy Exploration and are coming due at the end of this month.
1. What is the going rate for purchasing mineral rights in Grimes County? 2.What is the current status of any activity by Energy Exploration? 3. How much drilling is happening in Grimes Co.? 4. I have been contacted by a Gerald Ward working for 32 North Resources. Is anyone familiar with this person or supposed oil company? 5. Do you typically get any notice if the current lease is going to be extended? 6. Should I call the company to ask if it is going to be extended? Thanks for any assistance you can provide.
I am looking for approximately 5-10 acres of land for the possibility of placing a commercial disposal well....does anyone know any surface rights owners that may be interested? Call me, 512-791-2499
Hi,
I own 37 acres in Bedias, Tx in Grimes County, in which a Company named CGG wants to conduct a 3-D Seismic survey and therefore want to compensate me with $15 an acre. So my question is, if $15 per acre is a reasonable amount or how much should I ask for? By the way I do not own mineral rights, and in a couple of months another company will be running a pipeline
Has anyone done any business with a company out of Houston called Sequitur Energy? They are currently contacting landowners in Grimes County around the Singleton/Iola area. They are offering $450/500 an acre and 20% royalty.
Captain, I have never heard of them. Their offer sounds awfully low. I think it is better to lease to a known and reputable company who is actually drilling in the county. Just my opinion.
Over the past 5years we have received checks in the mail from companies wanting to lease our property. We are currently in a lease with Sandel energy from a gas well on someone's else's property. I would like to know if there is a way for another company to lease our property if it is already leased?
To the Captain, it is possible that the company wanting to lease is a lease broker, perhaps leasing land for an oil company who will actually develop and drill the lease. You might also try a Google search of the company
Russell, I have a number of questions regarding your inquiry. Are part of your minerals pooled with the well on someone else's property and are you receiving royalty checks? Did a landman ever contact you on the phone about leasing? How many years ago did you lease to Sandel Energy? Perhaps the well is no longer producing.