We have been contacted by Surprise Valley about leasing our mineral rights. They have offered us $550 per acre and 20% royalty. Does this sound on par with what others are seeing in the area? Abstract 450 @Alan_Herrington
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Hey Alan, I can’t answer your question–but I have some minerals in A-500, Martha C. Lee Survey–so I am interested to know also. (I wonder how close we are). We have had no lease offers, but some strong purchase offers very recently. My opinion would be that 20% is low, and so is $550, but I really don’t have any first hand knowledge.
Thanks. Benn
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I know quite a bit about where leasing is happening, but I know very little about current monetary numbers (bonuses and royalty %). It would be helpful if people who have leased would publish their numbers (unless they are under a confidentiality agreement).
In my opinion, everything is negotiable. However, maximizing the royalty % has always been my focus.
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The A-500 Survey is east of the primary area where Comstock is leasing via Surprise Valley. However, Hou Tex Exploration (speculator looking to flip) has leased some acreage in your survey and some of the adjacent surveys.
In addition, Vanna Production (I think they have drilling plans for Lower Bossier) has leased in surveys to the north, west, and south of A-500.
Looks to me like your acreage is not in the primary focus area, but it is close and you may see some leasing activity in the coming months. It would help if natural gas prices could rebound a bit!
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What’s going on in abstract 450? Thanks for the great info!
Vanna Production has leased about 550 acres in the SL Jones A-450 Survey.
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In viewing Vanna Production’s website there are no area’s of operating wells? These appear to be speculators and not an actual drilling and operating company. Flipper’s?
I’ve always wondered about the “flippers”! Apparently they know someone that will pay more than the normal owner knows so why the disdain for them?
No, they have drilling plans. They are working with the Wilks brothers (Sabana Royalty Partners), who created one of the early hydraulic fracturing companies, Frac Tech. The brothers sold their 70% interest in Frac Tech in 2011 for $3.5 billlion. Since Jerry Jones (majority owner of Comstock) also is a billionaire, there are now three billionaires involved in this new Lower Bossier play!
Although they have drilling plans, I’m sure they would be open to discussions if Comstock were interested in their lease position. At this point, Vanna has recorded leases covering an estimated 35,000 to 40,000 gross acres, primarily in Leon, but some in Freestone as well.
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I forgot to mention that there is another company, Thorp Petroleum, that initiated a leasing campaign in Leon and Freestone Counties probably for Lower Bossier as well. However, they have begun assigning their leases to Sabana Royalty Partners, so you can add their estimated 14,000 gross acres to the Vanna totals.
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My brother and I just signed a lease with Surprise. $600/acre & 22.5% royalty.
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Where are any wells been drilled by Vanna Production? ??+
No drilling yet…only plans. Working with Sabana Royalty Partners, they have built a leasehold in Leon and Freestone Counties approaching an estimated 50,000 gross acres (includes acreage being acquired from Thorp Petroleum). Here’s the latest map of the surveys in which they have leased acreage:
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