I recently was apart of the Massive leasing that Surprise Valley Resources did in the past 2 years. However recently I was reached out to by another company whom has offered to buy my roughly 22 acres for about 91k. This offer startled me, does this mean that there is something going on with my current lease? Or what? I have never been offered this amount before(most people severely low ball their offers).
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If you post your abstract, then folks in the know about that area can show you activity. Generally offers are before the bit and tend to be low. They intend to make a profit on any purchases.
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https://gisweb.glo.texas.gov/glomapjs/index.html You can use the RRC maps to look up your abstract.
I believe it is the A-285, The W S Fisher survey
Does your response mean that there is a profit on it?
I am currently leasing to Surprise Valley Resource (I believe it’s been going on for about 18 months) This is the highest offer I have ever been offered for purchase (not through surprise valley)
I have not heard about any royalties from the current lease so far. I am unsure how long that will take as well.
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I got an extremely high offer, too, from San Saba Royalties—$185k. Mine is an existing well in Leon County. There is some discussion you can find in Leon County about this topic.
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Do you have a link for it? I seem to have issues navigating the site to it’s full potential. That’s strange I wonder what the cause of that could be.
Go to the Leon County page. It’s there.
Link to Leon County Discussion Group… https://www.mineralrightsforum.com/c/texas-mineral-rights/leon-county-tx/750
I found it!! I am reaching out to a few companies. I am contemplating it hardcore. It seems like it literally is a 50/50 gamble. Do I hold out and run the risk of missing out?
I’ve seen horror stories about royalties as well. This offer is probably the most sustainable offer I have ever seen. (I have always been offered like 8k or 20k something kind of ridiculously low) I want to hold out, but how do I know there really will be an increase in 5 years? (I don’t).
@Mrsz1ppy you’ll do yourself a favor by hiring a professional independent appraiser to give you an engineered evaluation of what you own… when you get up into the hundreds of thousands of dollars, it only makes common sense.
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No, of course you don’t. I don’t know either. What I do know is that these institutions have cash to invest, to put to work to generate more cash. They wouldn’t make the offer unless they thought they would make back the money they pay you plus a profit.
Then I read about the leasing activity in Leon, thanks to this forum, and that tells me someone is planning to drill a lot of wells. Now whether that comes to fruition, I don’t know. But I do know that people stay rich by not spending what they get from selling an asset, but by buying another asset with it.
So I would sell and take the money, and pay the capital gains tax, if I had a place to reinvest it right now with a longer time horizon than gas wells.
I have only sold once, and that was a working interest in Parker County, also a gas well. I didn’t want the liability. I went to a sheriff’s sale in 2013 and bought more minerals with the money I made.
If you want to buy stock, for example, with the proceeds, that could be a good idea.
As for me, I am going to hold on. I enjoy mailbox money, and every time I start getting covered up with offers, I get a windfall a year or 2 later.
That’s experience talking…
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As I have posted before in this forum, it appears that Surprise Valley is leasing for Comstock, as a map of their leasing area in Leon County appears to be a continuation of the Comstock lease area in Robertson County. However, it may be a while before we know for sure.
So far, Comstock has permitted six horizontal wells in Robertson County. They appear to be targeting the gas potential of the Lower Bossier Formation. They have completed one well, the Circle M Allocation 1H, and that well has produced more than 3.9 BCF of gas in its first 137 days of production. I believe the frac job was recently finished on their second well.
Will be interesting to see what happens in the coming months…
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Alan can you give location and name of the second well ? you seem to be on top of the area which is great for out of area folks like me . Outlaw
I believe the second well is the Cazey Black A 1H. The pad is located just on the north side of Highway 79, between Easterly and New Baden.
Hello Lunaari, I also leased to Surprise Valley in 2021 approx 685 net mineral acres in Leon county. After they filed the leases in June 2022 the letters and offers started coming in daily. I’m a Realtor so I ask each mineral buyer to send me a formal offer by email. I was able to get the bids up to an amount that I was happy with. I can tell you they started low of course, but when they found out others wanted it I got quadruple the amount. For me it was a gamble I was willing to take, as I needed more retirement. The royalties I had made off all the mineral rights in the last 15 years didn’t justify holding them the rest of my life. Of course my father always told me to hold them, but its a different time and the offer I negotiated has helped my family very much. I had a great landman who I have worked with several times who helped me through the process. I hope this helps. Just remember they are going to come in very low, you can get those bids up, don’t give up! Good luck and have a great day.
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Here’s an excerpt from Comstock’s Q3 2022 Earnings Call that took place earlier today:
“Now many of you have asked about our western Haynesville region, the Circle M well in Robertson County started producing in April of this year, and has continued to have a flat production rate of around 30 million cubic feet of gas per day. We’ve also drilled our second well in this region, which is near the Circle M called the KC Block [ph], which was successfully drilled and completed that is expected to be turned to sales this month. Note that the Circle M well was shut in for 30 days. While we were completing the KC Block well.”
“KC Block” is actually Cazey Black, and it should be producing this month.
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Another optimistic statement from the earnings call:
“On the second well, we’ll get it turned to sales this month. We expect it to be just as good maybe a little better than the Circle M. And we don’t see anything really on the horizon a lot. Any of these future wells are going to be anything less than the Circle M.”
Comstock also said they are devoting two rigs to the “Western Haynesville”, their name for the new activity in Texas, although they appear to be drilling in the Lower Bossier. There may be multiple landing zones in the Bossier, so it will be interesting to see the directional surveys in their upcoming wells.
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Hello -
I have been following the posts regarding Surprise Valley Resources in Leon County, TX, and it seems like they might be writing leasing close to my mineral rights.
Can someone please help me understand current activity that might be occurring near the abstracts outline below? (According to an Encana landman, this is what may family owns in Leon County, Texas):
LEON COUNTY, TEXAS
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The First Tract 106.7 acres, more or less, being a part of the J. Scritchfield Survey, A-26, Leon County, and being the same land described in a deed dated October 24, 1975, from LB. Land Company, Inc to John C Morgan and wife, Nina Sue Morgan, recorded at Volume 430, Page 354 of the Deed Records of Leon County, Texas and also being the same land described in the corrected field notes of the Wiley R. Mansel 100-acre tract, as filed in Volume 154, Page 136 of the Deed Records of Leon County, Texas.
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The Second Tract 387.68 acres, more or less, being all of the 463.3 acres, and being all of the 320 acre W. Martin Survey, A-608, and part of the 320 acre W. Martin Survey, A-616, Leon County, Texas and being the same land described in that certain deed dated February 24, 1931, from M.M. Gamble, et al, to J.L. Gamble, recorded in Volume 78, Page 272, Deed Records, Leon County, Texas. LESS AND EXCEPT 73.73 acres, more or less, being a part of the W. Martin Survey, A-616, and being the same land described in a certain Warranty Deed described as Tract 1, dated October 19, 2001, from Pamella Sure Cunningham Fisher, et al to Thomas D. Marcantel and Janie M. Marcantel recorded in Volume 1095, Page 758, Deed Records, Leon County, Texas, LESS AND EXCEPT 1.89 acres, more or less, being a part of the W. Martin Survey, A-616, and being the same land described in a certain Warranty Deed as Tract 2, dated October 19, 2001 from Pamela Sue Cunningham Fisher et al to Thomas D Mercantel and Janie M. Marcantel recorded in Volume 1095, Page 758, being a total of 387.68 acres.
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The Third Tract 73.73 acres, more or less, being a part of the W. Martin Survey, A-616, and being the same land described in the Warranty Deed described as Tract 1, dated October 19, 2001, from Pamela Sue Cunningham Fisher et al to Thomas D. Marcantel and Janie Marcantel recorded in Volume 1095, Page 758, Deed Records, Leon County, Texas.
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The Fourth Tract 1.89 acres, more or less, being a part of the W. Martin Survey, A-616, and being the same land described in a certain Warranty Deed as Tract 2, dated October 19, 2001 from Pamela Sue Cunningham Fisher, et al, to Thomas D. Marcantel and Janie Marcantel recorded in Volume 1095, Page 758, Deed Records, Leon County, Texas.