Lease Offer

Texas Mineral Rights Archer County, TX
1

Hello Everyone,

My wife's family have received a lease offer for mineral rights in Archer County of $50 for 5 years. The only identification we have is that it is for 147.2 acres in Block 132 of the James Nelson Survey. I have not been able to positively locate this property since I live in Montgomery County, Texas and have not had an opportunity to do a court house search. There is an abandoned well on this property that was last active in 1995. Do you think this is a reasonable offer?

2

Kenneth,

I don't find a Block 132 searching the Archer County GIS Map. Nor did I find the James Nelson Survey. Are you sure the County in question is Archer County? Try to find me the Abstract and Section numbers and we can search from there.

Clint Liles

3

Mr. Liles,

I don't think anyone in the family has the Abstract and Section numbers. I have inquired of them and no one seems to know. A quote from the daughter of one of the heirs sent me this info.

The description on the oil and gas lease that my dad signed in 1981 is as follows:

147.2 acres of land, more or less, out of the James Nelson Survey, Block No. 132, and being the same land as described in a deed dated December 28, 1910 from Will D. Taylor et ux, to Charles Widmayer, recorded in Volume 47, Page 444 of the Deed Records of Archer County, Tx.

Tax records from 1986 indicate that this was Brooks Lease #2563. Tax records from royalty checks that I have Show Brooks Unit lease #09-005155, and the operator as Stroube Energy Corporation.

Thanks, Kenneth Hill

4

Mr. Liles,

I think I have a little more info that you might could use to help me. This property is in south side of Block 132 of the John W Harris subdivision of the Club Ranch. I believe the abstract number is 399.

Thanks,

Kenneth Hill

5

Kenneth,

I find that Archer County A-399 is Section 97/J C Stewart Survey if this is actually the correct Abstract #. Numerous oil wells/plugged oil wells and dry holes in the area will be on the second GIS Map.

RRC Public GIS Viewer Map of A-399/Section 97.

a8f84fbb040cfd6534ecc60d71dcad223c66568f.JPG1400×786 81.6 KB

2f2f6020a56c9a561eec6f77ef8f60337c052397.JPG1400×786 162 KB

After seeing there is production in the area I will say that $50 per acre is a very low ball figure. I would ask for $250 and a 3 year lease and negotiate. Just my opinion.

Clint Liles

6

Hello Clint,

After searching OG maps I find J. Nelson survey to be Abstract 328. The property in question is in the southwest portion of the survey. I only see one producing well and five permitted locations in the entire survey and none in the southwest portion. Hwy 25 bisects the survey west of Archer City. Maybe you want to revise your lease value after reconsidering.

Thanks,

Kenneth Hill

7

Kenneth,

After reviewing the GIS Map of your minerals area it doesn't look too promising for long term production in the area. Most of the wells in the area were drilled in the early 1980's and most of them now are plugged oil wells. The targeted formations seem to be the Caddo and Mississippi. These wells were 1,200 to 5,000 ft deep. Also numerous dry holes in the area. I'm not so sure I wouldn't take the $50 per acre and be happy that I got a lease. Good luck with your lease.

RRC Public GIS Map of Archer County, Texas A-328 and surrounding area:

40d015514d02b1ec720c2a75a0770926dd699bc4.JPG1400×786 210 KB

Clint Liles

8

Thanks for your help Clint.

Kenneth W. Hill