We got a 25% per cent royalty 2 1/2 yrs ago with depth restriction and unit size limitations on a 3 yr w/o renewals. They haven’t drilled on us yet but are currently drilling next door. We would ask 1500 t0 2000 an acre for a 3yr now if we get the chance.
Alan,
After checking further I find another drilling permit that has been submitted on May 28, 2014 for A-710.
http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m…
Clint Liles
Mr. Sponberg, In the entire southern half of Houston County, Texas at this time you should not lease for less than $850/net. mineral acre. No longer than a 3 year term and demand a 1/4 cost free royalty. There are a lot of companies leasing this area now. Do not lease unless the company name is on the lease and active in Houston County. Don’t let the broker take the lease in their name. Ask to get paid with a check and don’t sign a lease or a draft unless you have the check or cashiers check. IF Dixon does not want to deal call one of EOG lease brokers at their Crockett office at 391-596-3586. EOG will put their name on the list. They are now the “top dog” in Houston County.
Alan,
At the present time a permit has been submitted to the RR Commission to drill on your minerals(A-710):
This is a link to the permit that has been submitted:
http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m…
I tried pulling up completion reports on wells next door to the west of your A-710. Well # 31329 and # 31328–No completion packets. These wells were drilled in May 2014. Your minerals are in a hot area. I think $1500 per acre sounds better with 25% royalty.
Am posting a GIS Map of your Houston County A-710 and surrounding area:
Clint Liles
Mineral Owner & CNT—many thanks for the helpful information! Any further sources either of you would care to share for the figure of $850-$1000/net ac @ 1/4% cost-free? Anyone else? (And be assured, I will have someone look over the Bright Horizon lease once I get a copy.)
Alan
Thanks also to Clint Liles!!!
Sounds like things are starting to heat up again.
Alan
Alan/CNT,
The best I can tell on this map is the location is east of Lovelady in the Weldon Community area. Definitely closer to Lovelady than Crockett.
Clint Liles
Roy Sanders is a landman with Dixon Services of Tyler currently seeking leases on behalf of Bright Horizon (Tulsa). Current offer is 20% royalty over 3 yrs (with a 2 yr renewal option) and a $500/acre for a small (49 acre) divided parcel near Lovelady: Burrell Morris Survey, A-710.
Seems low to me given the amount of activity I believe that area has seen in the last few years. Can anyone confirm this impression, and if possible also add details on other current offers? Any other comments re recent activity in this area would also be very welcome.
CNT,
The permit states 18.1 miles SW of Crockett. Also after checking the date of this permit I see where it was submitted on May 14, 2014. They are still trying to get it all together before they approve the permit.
DRILL BABY DRILL
Clint Liles
Clint,
Please forgive my ignorance and inexperience, but I too am having difficulty figuring out the map you so helpfully sent. Perhaps this more detailed legal description would help:
Being 49.33 acres, more or less, being a part of the Burrell Morris Survey, A-710, being more particularly described in that certain Deed, dated February 26th 1960 from Charles A. Bitner et ux, as Grantors to Linda Kay James et vir Tommy & Theresa Jane Collier et vir Calvin, as Grantees and being recorded in Volume 1096, Page 122, in the Deed Records of Houston County, Texas.
Alan
CNT,
My understanding is that the parcel described in my earlier posting to Clint, is much closer to Lovelady than to Crockett, maybe even with in the Lovelady city limits, but I can’t say for sure as I have not previously been able to locate it on a map and I’ve never been there. (Plus, at the moment, I am writing temporarily from Berlin, Germany)
Still, I hope this is at least of some help,
Alan
Clint, Thank you so much for clarifying the map for me…I am not very knowledgeable about all this. I would like to see some serious drilling all around Crockett. Drilll, Drill, Drill
Mr. Sponberg, Definitely call EOG to see if they would beat all offers you get for your minerals.
Alan,
I would say west southwest of Lovelady. Just exactly where your minerals are in that Weldon area is hard to tell. You would need a plat map to know for sure. That could possibly be purchased from the Houston County Clerk’s office.
Clint Liles
Clint,
Thanks again for the additional clarification. The track we have a divided interest in is so small-- just 49 acres–that we are going to need the more exact survey measurements from the Houston County Book of Deeds, I think. Also, the map seems to show the Weldon quadrant west of Lovelady—or not?
Alan
Does anyone know if Buddy Cotten is still active in minerals management. He was very helpful when I contacted him a few years back, and I was hoping to reach him for advice re: the minerals referenced below before my current travel schedule makes contact temporarily more uncertain. Unfortunately my internet access will become much more limited after Thursday evening, and I haven’t yet been able to reach him. On vacation maybe???
Any suggestions for a comparably experienced lease negotiator should Cotten not be available??
Contact Information: Houston County Clerk
http://www.co.houston.tx.us/default.aspx?Houston_County/County.Clerk
Elizabeth,
Could you be more specific on the legal description, like Abstract #, Section and Block #?
Clint Liles
Clint I have been contacted by EOG to renew a lease for approx 1500 acres A-72, A -25, A - 710, A-50 and A-89. I have had other independent landman interested as well. Any info is greatly appreciated
Thx
Elizabeth, You definitely want to take your time with your lease. EOG usually pays the highest $$$ per net mineral acre. You want to be sure you sign a lessor friendly lease.