Use this post to share and discuss your lease offers in Karnes County, TX. The more we know about what is being offered the better decisions we'll all make. Share your bonus, royalty rate, and any other provisions you were able to negotiate.
Regards,
Well, I guess I will kick this discussion off. Back in 2007 I entered into a lease with Pioneer Natural Resources for $250 an acre with 22% royalty. This was before I knew anything about the Eagle Ford Shale and the potential it had so I have been kicking myself for jumping at this "low ball" offer. The good news is that their lease expires in March so now that I am more "educated" on the Eagle Ford Shale I am going to ask for a completely new lease instead of renewing it because if I renew it it will more than likely be at the same rate. With a new lease I will be in a better position to get much more per acre. I know that I will be able to get over $8,000 per acre. I know this because I had another parcel of land and in 2010 I entered into a lease with Hilcorp who sold their interest to Marathon this year. They offered $8,000 per acre with 25% royalty.I know these companies are willing to pay good money for leases in certain areas.
Richard Cash said:
Well, I guess I will kick this discussion off. Back in 2007 I entered into a lease with Pioneer Natural Resources for $250 an acre with 22% royalty. This was before I knew anything about the Eagle Ford Shale and the potential it had so I have been kicking myself for jumping at this "low ball" offer. The good news is that their lease expires in March so now that I am more "educated" on the Eagle Ford Shale I am going to ask for a completely new lease instead of renewing it because if I renew it it will more than likely be at the same rate. With a new lease I will be in a better position to get much more per acre. I know that I will be able to get over $8,000 per acre. I know this because I had another parcel of land and in 2010 I entered into a lease with Hilcorp who sold their interest to Marathon this year. They offered $8,000 per acre with 25% royalty.I know these companies are willing to pay good money for leases in certain areas.
Due to the drought and its affects on water availability which at least I didn't anticipate, it appears that water is becoming a much needed resource in the area for drilling companies. Does anyone know what our rights as leasees are regarding the utilization of our water supply for the leasers' drilling activities? i.e., is anyone receiving compensation for their water usage by the company leasing their mineral rights?
Thank You,
Jane, Nick, and Zack
I just heard that Blackbrush is in the process of being bought out by EOG. Any truth to this. I have a lease that came up for renewal on January 1st with Blackbrush and their last offer was a joke. They were offering $3000 an acre with only 18 %. Now, we haven't heard anything. So, there is 72 acres in the Hernandez Survey where Shell's old production office used to be up for grabs!
new to this forum-
mary ann-we must be neighbors because we share the 100 undivided mineral rights with blackbrush and surface at the old shell plant in panna maria- they offered us an extension for another 3 yrs for $1350/acre which we also thought was a joke- our lease is up end of march so we're also looking for new deals for oil/gas and surface if anyone is interested.
Mary Ann Kotara Schirmer said:
I just heard that Blackbrush is in the process of being bought out by EOG. Any truth to this. I have a lease that came up for renewal on January 1st with Blackbrush and their last offer was a joke. They were offering $3000 an acre with only 18 %. Now, we haven't heard anything. So, there is 72 acres in the Hernandez Survey where Shell's old production office used to be up for grabs!