Is the block 25 on the eastern side of Mitchell getting good leasing action?, or is it too big a block to make that general comment? I have good experience leasing (but seems we are always learning) but just dont know this area and as am leasing these mineral on behalf of a client, am wanting to max out the lease as all in this group are trying to do. Dont have to lease it, but if do, needs to be near the top. This is first go in Mtchell. Great group of folks working it. As usually am working leases from operator’s side, the internet has made it much tougher… dang!!!, but nice communication here by the mineral owners. Advise, and thanks. wes
JB…link does not work for me…?
The legal description is more than just a Block, look also at the Survey; e.g, T&P Railway Survey.
Wes, looking at my map, there are two block 25s in the county – a big one with 96 sections in the far eastern part of the county (Lorraine is in the center of that block) and there’s a smaller one on the northwestern border of the county that has only five sections.
Its T&P Ry Survey, thanks for that; let me know whereabouts it is, if you will, as havent gone into the TexRRC site yet (and that can get cumbersome at times.)
Mitchell is in the cline shale, eagleford is south and east of san antonio.
I have been offered up to $800 a net mineral acre bonus and 25% royalty.
That’s the big one on the far eastern part of the county.
Does anyone know who the producer would have been and why the stakes were pulled on the location five miles south of Loraine?
Mickie, pls help me understand how you arrive at a $7200 value per acre for the Japan company purchase, as my family is currently negotiating leases and we are new at this. Is the $7200 per acre the signing bonus only, or does it include a royalty?
Ferrell no it is not the signing bonus. I took the sales price divided by the amount of net acreage they claimed to have sold( 1/3 of their total). You can read the article if you google cline shale as another member mentioned. This figure seems quite low compared to other plays but Im guessing it is not proven yet. This is still a great profit for Devon considering that they leased most of it for next to nothing plus cost. My family has decided not to lease at the current low prices and wait to see if the cline shale pays off. if it does not then we missed out on signing bonus, but if it is good then it will pay off big. Most of our’s is a fractional interest with the rest belonging to others that have already signed leases so if they drill theirs they are drilling ours. Some bonuses in the eagleford shale are at $10,000 an acre.
Thanks, Mickie. So, Mitchell County is part of cline shale or eagleford shale? And, is Mitchell county oil mostly from shale? What is the going mineral rights lease rate in Mitchell: siging bonus and royalty?
We went to Sweetwater the back way a few days ago. I think they were gone too, seems like we could have still seen the orange flagging even on the ground. BUT, SOME COW COULD HAVE THOUGHT THEY WERE EXCELLENT STOMACH SCRATCHERS : ) and knocked them down.
I am 99% sure that the permit is a Laredo Permit, but not sure as to why they may have pulled the stakes. I understand that Laredo is still planning on drilling in that area prior to the end of the year.
Last night I was talking to a man who used to be a gas landsman. He said that in the matter of gas there is a rule the companies go by that anyone who doesn’t have a lease on their property when the drilling starts can only get an average in monies for their lease and an average of the percentage paid out for production. Does anyone know if this applies to oil also?
Trudy, that applies to oil and gas, if no lease, and they drill, there is a statute/law-provison/part of mineral resource code (not sure which one) that when the well pays out, that mineral owner backs into the well and participates in the well for his full percentage of mineral interest, as it bears to the whole, for both revenues and his share of well operating cost. If the mineral owner wants to lease it, at any time whether during drilling/production or otherwise, there is no “average”, its what ends up being negotiated.
Bill showed me this morning where Firewheel applied for their permit to drill on the Webb location south of Loraine. 8,500 ft horizontal well. Go Firewheel, go!
Does anyone have a sample copy of a lease that one of your local attorneys has put together? I would like to see what kind of lease they are negotiating.
We used Ty, and we feel it is a very good lease and yes it is about 20 some pages long, however there is a lot of personal information in the leases as well, and each person’s lease was designed for them, so You might want to spend a small amount and have a consultation with one of them and see. Like anything else, who have to shop around, and look around whether it is hiring an accountant or an attorney that will be working for you. I can tell you that I feel either one of these attorneys are very good oil and gas attorneys, however that is my own opinion. So good luck on your journey.
I did not know Firewheel had applied for a permit. That is who we leased to. Where is it?
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