Unsigned lease in hand - can anyone beat this offer

Shales Eagle Ford Shale
1

I HAVE A LEASE OFFER NOW IN HAND FOR 40 ACRES NEAR CHARLOTTE IN ATASCOSA COUNTY. THE OFFER IS $400 PER ACRE FOR THE LEASE BONUS (3 YEAR LEASE) AND 22.5% ROYALTY. CAN ANYONE BEAT THIS $400 PER ACRE OFFER ? i WILL NEED TO HEAR FROM YOU SOON. YOU CAN CALL ME AT 830-423-4656 -- LEAVE A MESSAGE AND I WILL RETURN YOUR CALL ASAP

2

Do you know which operator this offer is from? Or is it a broker who won't tell you who his client is?

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Rock Man said:

Do you know which operator this offer is from? Or is it a broker who won't tell you who his client is?

i HAVE THE LEASE AGREEMENT - IT IS A LEASE TO VIRTEX

4

Active player in the trend - leasing to them should result in a well being drilled that includes your lease. Thay are not Eagle Ford players which explains the lower bonus and royalty numbers. Good operator

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Rock Man said:

Active player in the trend - leasing to them should result in a well being drilled that includes your lease. Thay are not Eagle Ford players which explains the lower bonus and royalty numbers. Good operator

Thanks for the information - It is an encouragement

6

I would like to talk to you more about your interest. Please message me

7

4/5/14

Hello James.

I have received your message. I will be away most of today but let me hear from you and I will reply ASAP

8

Doesn't sound like a bad deal even if the bonus isn't so high. It's my understanding that Virtex is drilling shallow vertical wells not horizontals in the Eagle Ford. Oil units (that aren't horizontals) are typically around 80 acres. So, if you own 40 mineral acres, you would get around half the oil in the unit times (X) your royalty of 22.5%. People on the forum - please correct me if I'm wrong.

9

If all 40 of his acres are in the unit. I would be careful about the pugh clause.

John Goode said:

Doesn't sound like a bad deal even if the bonus isn't so high. It's my understanding that Virtex is drilling shallow vertical wells not horizontals in the Eagle Ford. Oil units (that aren't horizontals) are typically around 80 acres. So, if you own 40 mineral acres, you would get around half the oil in the unit times (X) your royalty of 22.5%. People on the forum - please correct me if I'm wrong.