Oil & gas discussion group for those interested in Stephens County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Has anyone been contacted by the Pendragon Company regarding a request to lease property in Stephens County recently? I had one contact but no follow up.
Ives B. Ort
Nothing new with Pendragon. Lift Energy leased some property last year, and another opertaor just filed a permit for a horizontal Barnett well on it.
Thanks Wade. The Landman was discussing interest in a large tract.
What is going rate for royalty and bonus in Stephens County for a 4,100 ft vertical well?
We were offered 50, on small acreage. I think that is way to small. What do you all think? Also only 3/16. Bob
Mr. Crow, when you say "small acreage," how big is the tract versus what approx percent do you own? I was approached yesterday regarding 8.3% of a 160 acre parcel. To date I don't believe I have entered into a lease at less than a 1/4 royalty but initial comments from company was for a 1/5 with a $200 bonus. thanks in advance for your thoughts.
Doug Archer
Bob, Both are low.
Thanks for the help.bob
I see that there are very few members in this county group so i hope that at least one or a few might be in a position to provide meaningful dialog. Several months ago i was approached to lease my share of a 160 acre tract where my family owns 25% of the minerals. The operator states they are planning shallow wells so i doubt the will object to inclusion of deeper rights in the lease. At this time, they have held firm to their original offer of a three year lease, $200 per net mineral acre bonus payment and a 1/5 royalty. I have not yet cone a lease at less than a 1/4 royalty and do not plan to do another lease in which the royalty is anything other than a cost free royalty. If you are a landowner, or a consultant to landowners, in essence not working for the oil companies, i welcome your thoughts on what i should consider with respect to a counter and whether i should ignore this offer and simply wait for a time when i can get the 25% i expect. Thanks
I see that there are only 24 members in this group so i hope to learn from several of you.
Last year i was approached to lease our minerals in Orphan Asylum Lands which was a 160 acre tract. At that time we were offered a 20% royalty with a $200 per nma bonus. 20% seemed light and bonus seemed low.
Has anyone heard of current market in Stephens County? If you need more detail and want to discuss this, i can be reached at during the day.
Thanks
Doug Archer
Doug, Some local companies are leasing, but overall not real active. Would suggest trying for $450 and 23%.
Can anyone tell me if any of the wells in Survey 662, A-486, are still producing? They appear to be old wells, but the RRC map doesn't show them to be plugged. Thanks.
I just reached out to Clear Fork Royalty who had approached us in 2013 to lease 160 gross acres in the Orphan Assylum Lands (SE/4) Section 10. The offer seemed light, these were to be shallow wells picking off pockets of oil if I recollect correctly. they offered $200 bonus and 1/5 royalty.
I believe one of my relatives leased his portion but the rest of us did not make a lease.
I reached out today to ask if they had drilled, sold the lease or what their plans were. A representative on behalf of Pendragon responded
"Pendragon has not drilled a well in the SE/4 of Section 10 OAL."
I take it that this propsect is not likely to be drilled at this time.
Let me know if you have other conclusions.
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