Crimson Exploration has drilled four (4) Woodbine interval wells during 2012, and has announced it is going to drill a 5th and 6th. Crimson has not publicly stated so, but their Vicky Trust Oil well may very well be testing the limits of the Georgetown in Madison County. June 25th seems to be disclosure day for all above wells, their strength, their daily production numbers and what zones are being tested!!
All during 2012 Crimson's President Allan Keel has repeatedly said, "Don't forget the Georgetown". His analysis is Crimson's 3D shows the Georgetown to be deeper and far wilder ranging in area.
If past history holds strength and Crimson 1998 Grimes Co Portledge 1H well (it had only a 2,000' lateral) is the Georgetown harbinger of great wells (it's still producing and has produced in excess of 700,000 bbl.). Crimson is currently drilling the A. Yates and has announced two additional wells to be drilled this summer. They are the Stuckey-Upchurch 1H and the Coventry-Upchurch 1H.
So all you mineral owners beware! The oil patch wolves are running wild in Grimes County trying to snatch any low cost lease they can.
You mean like Weber Energy? They offered us $250/acre; I told them we had already turned down offers of $300 an acre (2010) and $400 an acre (2012) PLUS the people that offered those were going to be flipping it to someone else. You would think a company that actually has the potential to drill could come up with something better than $250.
The nerve! lol
Where is your acreage located? How many arcres if I may be so bold as to ask. Depending on your location might be able to assist you in getting a deal more to your liking. Know of several who are looking for leases and I could supply you with that info. Don't want anything for the leads, just wanting you to be treated fairly and with some respect. These oil patch wolves need to learn respect.
Just how low are these wolves trying to snatch an acre for say if you have 1/16th interest? What would you also say if you want the 1/16th you have to buy the ranch also (house with two fireplaces, two barns, three wells, septic tank, lights to barn, cattle guards and so on and so on...right on the Madison/Grimes border on the straight line from Iola to North Zulch and back to the straight line to FM1321?
Not real sure I fully understand your note. But let me try. Let's assume you are saying you owned a 1/16th interest in a parcel of ground. Would think whoever has contacted you most likely has also contacted the other owners of the mineral interest. So just because you own a 1/16th (6.25% of the whole) that it is somehow worth less than if you own more.
Look at it this way. What you own in actuality is 6.25 acres per 100 acres. They would therefore have to pay you for those 6.25 acres. If the plot is larger then your proportional share is larger and if its smaller then your proportional share is smaller.
Simply because you own a 1/16th doesn't mean you are not entitled to the going rate times your proportional share, at the time of signing. The area you speak of is a real hotbed of development and should command value accordingly. Surface usage is also something you need addressed in any lease you are considering signing as well as the time limit in which producer is to drill.
If the person you are talking to is a "land man" he most likely will receive an ORRI as payment for the leases he is able to bundle together and resell to a E & P company not a markup on the number acres he sells.
Is this any of help to you?
Actually it is 1/16th of a 640 acre unit. We own 1/2 of the unit and get 1/16th royalty for the oil and gas that comes from it. The other 320 acres is shared with 3 other people so we get 1/32nd of the royalty produced on their side of the fence.
Phil Wilson said:
Not real sure I fully understand your note. But let me try. Let's assume you are saying you owned a 1/16th interest in a parcel of ground. Would think whoever has contacted you most likely has also contacted the other owners of the mineral interest. So just because you own a 1/16th (6.25% of the whole) that it is somehow worth less than if you own more.
Look at it this way. What you own in actuality is 6.25 acres per 100 acres. They would therefore have to pay you for those 6.25 acres. If the plot is larger then your proportional share is larger and if its smaller then your proportional share is smaller.
Simply because you own a 1/16th doesn't mean you are not entitled to the going rate times your proportional share, at the time of signing. The area you speak of is a real hotbed of development and should command value accordingly. Surface usage is also something you need addressed in any lease you are considering signing as well as the time limit in which producer is to drill.
If the person you are talking to is a "land man" he most likely will receive an ORRI as payment for the leases he is able to bundle together and resell to a E & P company not a markup on the number acres he sells.
Is this any of help to you?
This area is from Iola to North Zulch straight across Zoraster Robinson to FM1321. So my question is really what would be a fair amount to get per acre if I sold the acreage, house, barn, wells, with the mineral royalty interest and not get rolled by some landman on the prowl trying to grab up everything in sight.
I do know from having talked to title clerks in Madisonville and Grimes county that no property has been sold with mineral royalty interest in 35 East Texas counties to a private individual or group in 40 years
Jack Ross said:
Actually it is 1/16th of a 640 acre unit. We own 1/2 of the unit and get 1/16th royalty for the oil and gas that comes from it. The other 320 acres is shared with 3 other people so we get 1/32nd of the royalty produced on their side of the fence.
Phil Wilson said:
Not real sure I fully understand your note. But let me try. Let's assume you are saying you owned a 1/16th interest in a parcel of ground. Would think whoever has contacted you most likely has also contacted the other owners of the mineral interest. So just because you own a 1/16th (6.25% of the whole) that it is somehow worth less than if you own more.
Look at it this way. What you own in actuality is 6.25 acres per 100 acres. They would therefore have to pay you for those 6.25 acres. If the plot is larger then your proportional share is larger and if its smaller then your proportional share is smaller.
Simply because you own a 1/16th doesn't mean you are not entitled to the going rate times your proportional share, at the time of signing. The area you speak of is a real hotbed of development and should command value accordingly. Surface usage is also something you need addressed in any lease you are considering signing as well as the time limit in which producer is to drill.
If the person you are talking to is a "land man" he most likely will receive an ORRI as payment for the leases he is able to bundle together and resell to a E & P company not a markup on the number acres he sells.
Is this any of help to you?
For our three wells, we get 1/8th, which is then divided by 2 (size of unit 640 ac). So for the three wells that produce exclusively on our property and is not gerry-mandered by the lease we get whatever percentage x .0625.
If the lease is drawn with just our wells on our property we get .0625. But, we also get .032 from wells in the unit north of our wire
One well which we get 60% of .0625 of has been producing since 2008 but CXP has not paid a dime.
This is not the first I have heard of Crimson not honoring its contracts. If that well is in a unit that includes your three other wells get me the well's API number and I will tract its production for you back to 2008. What is the name of the well, if you know.
Do you know the other owners of the mineral rights on your wells as well as the mineral rights owner on the well that you say Crimson hasn't paid you a dime in production money?
When did the unitization occur? I assume the nonpaying well was included in the unit. That would make it a very big deal, if it was included.
I think I am right in saying would only be entitled to production money from the neighbors well if it was put into a unit that included your mineral rights acreage.