Hi.
I was curious if there was any recent lease activity east of Centerville. I have a mineral interest whose 2-year option is up in October that I’d like to get released. Has anyone signed a new lease in this area recently? You don’t have to give exact figures, but any ball park figure on the per acre amount and royalty would be very much appreciated. My mother (Nancy) passed away last December and I’m trying to carry things on where she left off.
Thanks again in advance for any information or insights.
-Wayne
Mr. Nierth,
A lot has changed in the last year or so in the oil & gas business. Oil always goes down and it always comes back up! When, where and how are hard to guess right. In Leon as well as other Counties, companies have been bought and sold, sometimes several times. If you had a 3 year lease with a 2 year option, most likely they will want to release it and instead of paying you the 2 year option they will want to get another 3 with a 2 year option. If it is the same company you might tell them "you won't pay the two we have now, what makes you think you will pay the next time?" In other words pay the two year option! It's your minerals and your choice. Remember the option is "theirs to pay". You have no right to be payed and they have no right to pay. I don't like 2 year options for many, many reasons. They want to "tie you up", but they do not want you to tie them up!
Hi Mineral Owner. I never really thought about it in terms of having my own interest tied up. Thanks for the perspective. Based on the papers I'm looking at, you are certainly right. The lease holder through October is not the initial company. I was just curious if there may be anyone over here that has recently signed a lease who can give me a ballpark estimate of what acreage is going for. My area is off 114 east of Centerville, and based on the map on the RRC public viewer, there is a lot of production happening in the area.
From what I know of Leon County the area east of Centerville and south of Hwy 7 east from Centerville is a real good area. Swift owners over 12 net. mineral acres in that area. EOG owns most of the acreage in that area. They bought out a lot of other companies. Without knowing who is the owner of the lease at the present time, it is hard to say. Most likely if it is EOG they will want to do a 3 and a 2. I'd tell them to pay the 2 year option.
It looks like it was Chesapeake that signed the initial lease in 2010 with a 3 yr. +2yr option. All of it is up October 21st, I believe. This mineral interest is 245 ac. In 2010, I believe the lease went for 550/ac. + 1/5th royalty. If Swift and EOG are in the area now, maybe it was one of them that bought out the Chesapeake stuff in the area. Either way, it will be open pretty soon.
Is there anyone over here that may have a current lease with Swift or EOG in Leon Co. who would be willing to give me a ballpark of what they currently signed for per acre?