Does anyone know what the most recent bonuses are going for around the Moravia, Texas area in Lavaca County. I have been offered $1000 per acre 3 yr w/ 2 yr option (25%) royalties.
Thanks
Just agree to a 3 year lease only, no extension for 2years..............25%royalty is good. I don't know about the 1k per acre..........but negotiate it..........
Thanks Tim! I have an attorney working on the lease and he agreed that it should only be a 3 year lease with no option.
I have recently (Oct) signed a 3yr lease with option for 2 yrs. Bonus was 1,000 per acre paid at signing. Royality
is 25% . Property in the Moravia area. Unless you are an attorney I suggest you get one to counsel you since horizonial drilling has many pitfalls for the property owner. Good Luck!
Thanks John! You just answered what I needed to know. Good luck to you too!
Does anyone have information on the amounts being paid for leases in Lavaca county, particularly se of Hallettsville...?
I just "discovered" this forum so please excuse me for replying so late. My property is a few miles west of Moravia. I got $1500 per acre in April, 2011, but only 19%. I made the mistake of talking to a local attorney who I now think may have also been working for the leasing company. I knew even less about leasing then than now. I have since done a little research and found out a few other things I should have asked for in the lease - such as charging for water use. Like the old saying, live and learn.
The latest is the offer from Seitel Seismic for a seismic survey. This time I contacted a different attorney, who I hope will better advise me. The attorney is proposing a counter offer for a lot more money and a lot more protection for the property owner. Of course, no guarantee Seitel will accept. Still, I would rather forfeit the money than accept their original proposal. Will see what happens.
Tom, Looks like you did alright on the lease. I have 80 acres between Moravia and St John. Last year I leased for 1,000 an ac. with 25% royality. Did put in metered water usage. I too have informed Seitel that their proposal was grossly inadequate, not enough legal points covered and rate was not enough. Like you will see what happens
I also received a proposal from Seitel and have talked with a couple of others that have received the same proposal. Currently I am having my attorney look everything over. I am also waiting on Cypress Oil & Gas to respond back to a revised lease contract that my attorney has sent them. This has been going on since early December.
Four close neighbors have accepted the Seitel proposal at $15/acre; 3 of us are trying for better terms.
Kim Vanek said:
I also received a proposal from Seitel and have talked with a couple of others that have received the same proposal. Currently I am having my attorney look everything over. I am also waiting on Cypress Oil & Gas to respond back to a revised lease contract that my attorney has sent them. This has been going on since early December.
Do you think that if the seismic shows some promise below Eagle Ford, we could get more drilling in the area before long?
Dillon I suspect that there was much learned about the Eagle Ford in the Moravia /St John area when the Bigham vertical well was drilled. I am no expert by any means but when you drill vertically in the EF area you would seem to be determining the depth of shale and what is under it if any thing. Since the infrastructure isn't here to support a producing well I think they were on a fact finding action. Some experts on this area may clue us in if they see this and want to educate us.
I'm just saying that in regard to seismic companies, we maybe should be careful not to cut off our noses to spite our faces.
I just talked with Seitel and looked at their contracting powers. They can offer no more than 25 $ per acre and they will be able to get onto your property until the entire 325 sq mile is surveyed. If you want more than they can offer they just put your property as "not available" and then work around you. My suggestion would be to accept a 25$ offer. Tom and I live adjacent to each other and have been working together to learn about Seitel.
there has been some discussion of seitel on other threads in this blog. seems very often that they offer 15/acre and then go up to 30 / acre, which most folks settle for. having the most recent seismic is a plus for an area ( in my opinion)
Ihave not seen any money offered MORE than 25$. since that is the max they offer they just list the non-takers as "no Permit" and go around you.
Andy G. Grubbs said:
there has been some discussion of seitel on other threads in this blog. seems very often that they offer 15/acre and then go up to 30 / acre, which most folks settle for. having the most recent seismic is a plus for an area ( in my opinion)
Tom Dupler said:
Four close neighbors have accepted the Seitel proposal at $15/acre; 3 of us are trying for better terms.
Kim Vanek said:I also received a proposal from Seitel and have talked with a couple of others that have received the same proposal. Currently I am having my attorney look everything over. I am also waiting on Cypress Oil & Gas to respond back to a revised lease contract that my attorney has sent them. This has been going on since early December.
I'am getting 25 dollars a acre from Seotel wanted 30 but 25 is the best you'll get guess you could wait and get nothing.