We have been contacted by a landman to lease our property in Milam County. His offer was $250 for an 18 month lease period. Is this reasonable for the area?
Betty,
Location in the County can make a difference in the bonus monies per acre. What is your Abstract # of your minerals?
Clint Liles
We are in 2. The L.L. Chiles A-136 and Van Irion A-218.
Betty,
In A-136 I don't see where any wells have ever been drilled but next door just east of you in A-262 Clayton Williams drilled a oil well(API # 331-33528) back in 2001 into the Austin Chalk and Buda Formations. No completion report available on RR Commission website. Am posting a GIS map of the area. I would say you are in a good area for E & P(Exploration and Production). Also several other producing wells east and northeast of your minerals.
Link to drilling permit for API # 331-33528:
Clint Liles
betty vaughn said:
We are in 2. The L.L. Chiles A-136 and Van Irion A-218.
Betty,
A-136 and A-218 are both located in this GIS map with several Horizontal wells to the Northeast, East and Southeast of your minerals. WOW....Looks like a very good area to have minerals. Good luck.
Clint Liles
Betty,
after looking at the GIS map I would say $250 is a very lowball figure. I believe you can do a lot better than that. I am going to search further and see if I can come up with a completion report or 2 for some of those wells East of your minerals.
Clint Liles
Betty I have checked for completion reports for 21 of these H wells East, Northeast and South of your minerals and have found where no completion reports have been filed with RR Commission. These companies are being very secretive about these wells. Apparently they are good to very good wells. Just my opinion.
http://webapps.rrc.state.tx.us/CMPL/ewaSearchAction.do?methodToCall...
Clint Liles
Clint Liles said:
Betty,
after looking at the GIS map I would say $250 is a very lowball figure. I believe you can do a lot better than that. I am going to search further and see if I can come up with a completion report or 2 for some of those wells East of your minerals.
Clint Liles
I really do appreciate the info and maps of the area. I have tried researching the wells in our area on RRC but when I get to the map area and click on the wells, I get like a little firecracker showing amd nothing opens. I don't know what that means. Also, I find it very difficult to deal with these landmen.
Clint Liles said:
Betty I have checked for completion reports for 21 of these H wells East, Northeast and South of your minerals and have found where no completion reports have been filed with RR Commission. These companies are being very secretive about these wells. Apparently they are good to very good wells. Just my opinion.
http://webapps.rrc.state.tx.us/CMPL/ewaSearchAction.do?methodToCall...
Clint Liles
Clint Liles said:Betty,
after looking at the GIS map I would say $250 is a very lowball figure. I believe you can do a lot better than that. I am going to search further and see if I can come up with a completion report or 2 for some of those wells East of your minerals.
Clint Liles
Betty, back in 2011 XTO was relatively active in Milam Co. paying in the ballpark of $400 an acre. It’s interesting that this company is interested in an 18 month term, this along with the $250 price they’ve suggested to you tells me that they’re likely interested in tying up the land for as little as possible and hope to flip it for a higher price within a short time maybe pending on some nearby well results.
Try to find out who the local operators near you are and go directly to them. they will be the ones most interested in areas near where they already have wells. If you dont like dealing with some landmen, run them off. Plenty of nice, responsible folks to work with instead. these guys do sound like "flippers" find out what operator they represent. 18 months is highly unusual and makes everyone wonder about these guys. The normal term is 3 years with a 2 year renewal. Remember that while bonus money is nice the real money is in the royalty. Plenty of mature areas of Texas ( where the landowners have years of experience dealing with O&G) the standard is 25%. Remember also that these guys are comming to you to buy, you did not seek them out to sell. Patience now will pay big dividends later. Ask around with your neighbors, if there are some wells being drilled nearby everything could change when they are completed. It could be good, or it could be not so good.
Betty, I agree with what Andy Is saying in his post.
Am posting a link to 7 pages of Approved Permits for Milam County dating from October 01, 2014 through March 10, 2014. (64 approved permits/7 pages) This will give you an idea who is leasing and drilling in Milam County. Click on Lease name to view contents of approved permit.
Clint Liles
Betty,
Here is a link to Approved oil/gas operators in Texas.
http://www.rrc.state.tx.us/data/operators/ogdirectory/index.php
Clint Liles
Thanks Clint, but I can't open the link. When I click on it, the little yellow and red firecracker shows up and won't let me open it. I don't know what the deal is.
Clint Liles said:
Betty,
Here is a link to Approved oil/gas operators in Texas.
http://www.rrc.state.tx.us/data/operators/ogdirectory/index.php
Clint Liles
Betty,
I just clicked on it and it worked fine. Sounds like you got a 'puter problem.
Clint Liles