Hi - Own mineral interest in Block M - have been offered lease - would love to hear from others owning interests in Block M and what bonus amount is lately. Thanks
I own minerals in the E 1/2 section 77 in a 220 acre tract in block M in the NE corner of the section and haven’t been called. However my Grand Dad sold a 100 acre tract in the SE corner of sec 77 many years ago with all the minerals and about a year ago Red Bird Exploration leased about ten properties paying $300 and royalties rates from 25% to .1875%. I have the names and dates of these leases which I got from the Courthouse .com Lease/Alert program but for some reason they haven’t called me. There are three old dry Penn Reef oil wells on our tract and one dry well on the 100 acre tract… Any body have any answers?
I’ve just been offered a lease in Block M. Bonus offered of $400 per acre.
Curious, what company offered you the lease?
What section are your minerals located? I have minerals in a 220 acre tract in the NE corner of the east 1/2 of section 77 and they are not leased but Red Bird Exploration has secured about 10 leases in the SE corner of section 77 in a 100 acre tract over the last year paying $300 and up to 25% royalty.
South half of section 40.
Newbies Here on new site. We have just been offered by CGS Operating, LLC a 3 year primary term of $400 per mineral acre with a 3 year option to extend with same $400 per mineral acre with a 20% royalty. Our area is 320 acres more or less in S/2 of Section 103 in Block M Does anyone have any comments at all about this location and the offered terms.
Thank you
We were contacted by the same company in late Feb with the same offer. Their final offers to us were $500/A, 23%, no option or $550/A, 22.5%, no option. Our interest is N half of sec 25. Blk 36, T5N.
Do your research on courthousedirect.com to determine what royalty percentages and what option periods are being agreed to in signed OGLs.
I think that is a very good offer. I have minerals in Section 77 block M about 10 miles NE of Sec 103 and a few months ago there were about 10 new leases in the east 1/2 of section 77 in a 100 acre tract in the SE corner of sec 77 and they got $300/acre and up to 25 % royalty. My Grand Dad bought 320 acres , the E 1/2 of section 77 back in the 1920’s and we still have some minerals in a 220 acre tract in the NE corner. But so far I haven’t been contacted. Maybe they think all the oil is gone as there are 3 old dry Penn Reef oil wells on this tract. The last Penn Reef well on our place made over 2800 barrels in 2003 but the operator shut it down in Jan 2004 for maintenance and I had to send a letter to TRRC four years latter complaining about the well still shut down and the operator was then ordered to plug and abandon which was done.But they have knowledge of newer plays in the area because there has been a lot of leasing in this part of the county the last couple of years. I guess I am showing a little impatience but I’m 82 and kind of in a hurry.
If you click on this link the RRC map viewer will open on a well about 1.5 miles southwest of your section. Click on the light blue dot with the centered “i” in the tool bar at the top of the map and choose “wells” from the drop down menu. Then move your cursor over wells in the vicinity of your section and right click to open a pop up window. Use the sliding bar on the right side of the pop up window and scroll down to click on 'production data query(pdq). This will open a new window with oil and gas production for that lease. You asked for input, so I will give my two cents. Of course, try to negotiate a better deal, but do not lose this opportunity to get a bonus check for more than $120,000 because you can not get a full 25% royalty. How long have you owned these minerals? Have they ever been leased? Other than this time, have you been approached about leasing? If you would have few regrets about having this deal fail, then you are in a much better position to bargain hard. Please do a considerable amount of deliberation and additional due diligence. There are a lot of variables. 320 acres is a significant amount of minerals. Getting an oil and gas attorney to approve a lease would be money well spent. At the very least, read Checklist For Negotiating An Oil And Gas Lease.
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Does anybody know anything more about this CGS Operating? There is hardly anything online about them. It also doesn’t appear that they operate any wells. I’m just wondering if they plan on drilling wells, if they’re brokers for another operator, or if they’re just flippers looking to eventually sell the leases.
I tried to research them. Pretty much nothing. CGS landman with whom we dealt said “he represented one of the major oil companies in the world” and “if I knew their identity, I would be impressed.” I did research and discovered that not only is EXXON heavily investing in the Permian, but also BP and Royal Dutch Shell. Warren Buffet promises to invest in Occidental (leasing in Yoakum Co.) if they are successful in acquiring Anadarko. Lots of big players moving into the Permian! My comment to landman was that big oil companies had deep pockets and they could pay me more.
Interesting. Thanks for the help Peggy.
Per CourtHouseDirect, CGS Operating has recorded four leases in Dawson and a much larger number in Gaines, all in the year 2019. One idea might be to try to contact some of these lessors and see if more information could be gathered. Searching courthousedirect is free, but document viewing/retrieval is through purchase. Just click on the link above and choose Texas > Gaines and/or Dawson county, enter CGS Operating in the Grantee bar, and click search to generate a list.
peggy2 would you be willing to share the name/contact info of the CGS landman that you spoke with? I have some mineral interest in the area and would like to speak with them.
Joey (Joshua) Shelton.
I only spoke to him by telephone. I do not have a record of his number. He emailed my nephew who deleted all correspondence with him. Perhaps you can find contact info from a search on LinkedIn. I have in my notes that he denied he represented Royal Dutch Shell.
My notes state that he said his client was trying to lease thousands of acres in Dawson Co. He stated his client would not offer any royalties higher than 23%. His reason - lower oil prices than the last time we leased. He said his client needed at least a 2 year option, preferably 3 y, because client needed to build infrastructure. He said his client was serious about drilling.
Hope this is helpful.
Extremely helpful! Thank you very much!
Send me an email @ [email protected] and I will send you the CGS landnan’s name and phone number.
Its not exxon or Oxy or any of the others. Its EOG leasing that acreage.