I was sent a letter that Pillar EFS, LLC is forming a Lease block for the land that I currently reside at. they are offering $500/ per net mineral acre bonus consideration. with 18.75% Royalty. Does this seem low, where could I find the going rate? The address is 875 Riggins RockPit Rd, Pleasanton TX, 78064. Is there anyway I can find out more information about this? Thank you all for your help with this
Hopefully someone else can’t tell you something about what leases are going for in your area.
Below is what the Railroad Commission map shows going on around you. I think you’ll be able to pick out your location on Riggins Rock Pitt Road which is in the J.H. Dossey Survey, A-1153.
The map shows the only horizontal drilling activity near you were wells EOG drilled in 2014 that were 1 to 2 miles east and west of your location. None of them appeared to be strong producers but they are still going after 9 years.
Last August Pillars EFS took over as operator on the two wells east of you, and last December Pillars got permits approved to drill two horizontal wells 3+ miles south of your location.
You don’t have to settle for their initial offered, but it looks like Pillars may the only company that’s active in that area and competition is usually needed to pump up lease offers. If you are willing to spend some time on it, you might try contacting some of the larger landowners around you and see if they are willing to share information and possibly work together on leasing.
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Search the Railroad Commission GIS Map: RRC Public GIS Viewer (texas.gov)
Hit the magnifying glass at the top > click surveys > type in your county and abstract A-1153 (JH Dossey)
There is probably room for negotiation, but not sure how much. This is on the edge of the play, but it is prolific to the SE.
They are one of the operators in the area (Pillar Oil & Gas, LLC (pillarog.com)). Some others are listed below:
Atlas Operating LLC – Atlas operating LLC
Global Offshore Onshore Exploration | Murphy Oil (murphyoilcorp.com)
Not sure how much time you want to commit to gathering interest…there would be a number of non-operators that would have interest in leasing as well.
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Thank you so much for your feed back
Thank you so much for your feed back
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