We are also looking for help on a lease offer in Hamilton Co. Once we get through declarations of heirship, my siblings and I have about 33 net acres in what is described as eight tracts totaling 192.2 gross acres, in the James Hamilton Survey, A-23, Cherokee County, Texas. The description goes on to describe the 8 tracts that each contain 8 to 59 acres. The initial offer is $200 and 1/5th. The landman is representing the COX agency. We are not sophisticated Oil peeps, and would appreciate any information. Thanks, WSD
William,
This northern part of Cherokee County has seen a lot of Horizontal gas wells being drilled in the last few years. Some fantastic gas well with initial production of 5 to 10 million cubic feet of gas per day producing from the Cotton Valley Sand Formation at from 10,000' to 12,000'. Tanos Exploration, Breitburn and Jamex seem to be the major operators in this area. I would try to negotiate for $250 per acre and 1/4(25%) royalty. These companies are going to try and get your acreage on the cheap. Be sure and have a NO DEDUCTION CLAUSE in you lease. No use giving the operator back some of your royalty monies to process or transport the gas. And they will try to take your money from you. If you know of an oil and gas attorney it might be a good idea for you and relatives to split the cost and get a good lease. These gas wells will generally produce for many years.
This link is to a Horizontal gas well that was permitted for 12,000'/Cotton Valley Sand Formation/Jamex Operating/Permit approved February 2017/API 073-31560:
The well 31503 in A-23 was drilled by Will-Drill Operating in 2013 into the Pettit Formation/Oil well.
GIS(Geographic Information System)map of Cherokee County A-23/Hamilton Survey:
CLICK ON MAP TO ENLARGE
Clint Liles
William,
This link to courthousedirect.com/LeaseAlert will show you some acreage being leased by Texline Energy in A-23/J Hamilton Survey. COX Agency is possibly a leasing agent for Texline Energy.
https://www.courthousedirect.com/LeaseAlert/Home/GetBatch/?id=sijsB...
More information from Lease Alert on A-23:
Clint Liles
Clint,
Thank you for your speedy reply. I have a no deduction clause that I have used successfully in the past. I was thrown off by another reply on this site that was encouraging a counter of $1200 per acre with a 1/4. Seemed out of wack. I think $250 and a 1/4 with no deduction would be good. We have been the happy recipients of some leases in Panola Co., but don't have any other interests in Cherokee. It's apparent from your posts that you have the pulse of this area, and your info is much appreciated! Thanks, W