Various Questions Regarding Grimes County Mineral Rights

Hello,

I have property and mineral rights in Grimes County - about 85 acres in the B.B. & C.R.R.Co. Survey in Singleton, Tx. I have several questions. The minerals are currently leased by Energy Exploration and are coming due at the end of this month.

1. What is the going rate for purchasing mineral rights in Grimes County?

2.What is the current status of any activity by Energy Exploration?

3. How much drilling is happening in Grimes Co.?

4. I have been contacted by a Gerald Ward working for 32 North Resources. Is anyone familiar with this person or supposed oil company?

5. Do you typically get any notice if the current lease is going to be extended?

6. Should I call the company to ask if it is going to be extended?

Thanks for any assistance you can provide.

I'm not very far from you in Singleton. You must have originally signed with Herd Producing back in 2010 when they first came through our area and then in 2012 flipped their leases to Energy and Exploration Partners out of Fort Worth, would that be correct? We did not sign with Herd when they offered us $300/acre (20%) in 2010 and $400/acre (20%) in early 2012.

According to the Texas Railroad Commission website, there are several well permits being requested in our area but I don't know how much actual drilling is occurring. The last well permits requested by Halcon, who partners with Energy and Exploration Partners, was in January of this year. I do know CML Exploration has been requesting a whole bunch of permits in the Iola area just lately.

Insofar as the going "rate" on purchasing minerals.....if you mean leasing the acreage for an oil and gas lease, at least, that's what I call it, I can only share my past experiences - we were offered $650/acre with 22% royalty by Energy and Exploration Partners (ENEXP) in 2012; we got them to agree to $900/acre with 23% royalty (in writing); however, we did not have a standard lease as it provided us some favors. Long story short, after 6 months of going back and forth, they walked away from the deal. As you can imagine, it left a bad taste in our mouths regarding this organization. Since that time, I have found out we were not the only landowners they did this to in Grimes County. I do know that ENEXP conducted lots of seismic testing in our area earlier this year and the results of which will be available towards years-end. That could help or hurt future bonus offers to lease land in our area depending on the results of the testing.

Here's some info on a company called 49 North Resources headquartered in Canada:

http://investing.businessweek.com/research/stocks/snapshot/snapshot...

I just read Buddy Cotten's blog on leases coming up for renewal. GREAT advice and you do need to get a release of some sort from ENEXP that appears in the county courthouse records so it will show your land is available for lease again. Just knowing that certain leases in my area are expiring is music to my ears. It means new prospective drillers will be sniffing around the courthouse seeing who is leased and who is not.

Hope some of this info helps.

Captain Skittles,

Thanks so much for all the good information. Yes, I signed with Herd in 2010. It was a 3 yr. lease and it had a 2 yr. extension option on it. I have not heard from anyone from ENEXP about whether it will be extended or not. If they want it extended, don't they have to let me know before the end date of the lease?

I haven't read Buddy Cotten's blog, but will. Thanks for the advice about getting a release. I am assuming I can't get one until I know they are not utilizing the 2 yr. option.

A strange thing happened with a person from 49 North Resources. He called, got my email and cell # and said he wanted to send me a top lease for the last 2 weeks of August that said if ENEXP didn't extend, 49 North Resources would get to lease the mineral rights...... Then I didn't hear from him..... (which was fine because it all didn't sound right to me....and I shouldn't have given him my information, but did.

Thanks again for responding.

Captain Skittles said:

I'm not very far from you in Singleton. You must have originally signed with Herd Producing back in 2010 when they first came through our area and then in 2012 flipped their leases to Energy and Exploration Partners out of Fort Worth, would that be correct? We did not sign with Herd when they offered us $300/acre (20%) in 2010 and $400/acre (20%) in early 2012.

According to the Texas Railroad Commission website, there are several well permits being requested in our area but I don't know how much actual drilling is occurring. The last well permits requested by Halcon, who partners with Energy and Exploration Partners, was in January of this year. I do know CML Exploration has been requesting a whole bunch of permits in the Iola area just lately.

Insofar as the going "rate" on purchasing minerals.....if you mean leasing the acreage for an oil and gas lease, at least, that's what I call it, I can only share my past experiences - we were offered $650/acre with 22% royalty by Energy and Exploration Partners (ENEXP) in 2012; we got them to agree to $900/acre with 23% royalty (in writing); however, we did not have a standard lease as it provided us some favors. Long story short, after 6 months of going back and forth, they walked away from the deal. As you can imagine, it left a bad taste in our mouths regarding this organization. Since that time, I have found out we were not the only landowners they did this to in Grimes County. I do know that ENEXP conducted lots of seismic testing in our area earlier this year and the results of which will be available towards years-end. That could help or hurt future bonus offers to lease land in our area depending on the results of the testing.

Here's some info on a company called 49 North Resources headquartered in Canada:

http://investing.businessweek.com/research/stocks/snapshot/snapshot...

I just read Buddy Cotten's blog on leases coming up for renewal. GREAT advice and you do need to get a release of some sort from ENEXP that appears in the county courthouse records so it will show your land is available for lease again. Just knowing that certain leases in my area are expiring is music to my ears. It means new prospective drillers will be sniffing around the courthouse seeing who is leased and who is not.

Hope some of this info helps.

Chris,

Tried to message you but could not. We have minerals south of you in Bedias,TX and are also leased with Energy and Exploration Partners (EEP). We have a lot of the same questions and have a few questions for you.

I know you mentioned your mineral rights were coming up for renewal.

1) Did you get that renewal from EEP?

We are up for renewal in Summer 2014 and just curious if they are renewing some or all of the leases. Thanks for your input in advance. I also friended you if you could reply to that since I have other information to share.

God Bless,

Doug Robinson

Will do in an hour or so. Yes it was renewed by EEP.

How far before your renewal date did they finally contact you?

Look forward to opening a strong line of communications. Know I am praying for God blessings for all of us with a strong production and some big payday on our leases. Actually, prayers for all those viewing this forum with mineral rights, especially the Grimes County crew!!

Captain Skittle,

Do you know where and when that seismic survey information that EEP conducted in the northern Grimes County area will be available and through what sources?

Thx


Captain Skittles said:

I'm not very far from you in Singleton. You must have originally signed with Herd Producing back in 2010 when they first came through our area and then in 2012 flipped their leases to Energy and Exploration Partners out of Fort Worth, would that be correct? We did not sign with Herd when they offered us $300/acre (20%) in 2010 and $400/acre (20%) in early 2012.

According to the Texas Railroad Commission website, there are several well permits being requested in our area but I don't know how much actual drilling is occurring. The last well permits requested by Halcon, who partners with Energy and Exploration Partners, was in January of this year. I do know CML Exploration has been requesting a whole bunch of permits in the Iola area just lately.

Insofar as the going "rate" on purchasing minerals.....if you mean leasing the acreage for an oil and gas lease, at least, that's what I call it, I can only share my past experiences - we were offered $650/acre with 22% royalty by Energy and Exploration Partners (ENEXP) in 2012; we got them to agree to $900/acre with 23% royalty (in writing); however, we did not have a standard lease as it provided us some favors. Long story short, after 6 months of going back and forth, they walked away from the deal. As you can imagine, it left a bad taste in our mouths regarding this organization. Since that time, I have found out we were not the only landowners they did this to in Grimes County. I do know that ENEXP conducted lots of seismic testing in our area earlier this year and the results of which will be available towards years-end. That could help or hurt future bonus offers to lease land in our area depending on the results of the testing.

Here's some info on a company called 49 North Resources headquartered in Canada:

http://investing.businessweek.com/research/stocks/snapshot/snapshot...

I just read Buddy Cotten's blog on leases coming up for renewal. GREAT advice and you do need to get a release of some sort from ENEXP that appears in the county courthouse records so it will show your land is available for lease again. Just knowing that certain leases in my area are expiring is music to my ears. It means new prospective drillers will be sniffing around the courthouse seeing who is leased and who is not.

Hope some of this info helps.

Doug, I was told by a representative of CGG, the seismic company working for ENEXP and Halcon (who are partners, by the way) that testing should be finished towards years-end. He went onto say that although he is not a geologist and trained to read the results, from what he can tell, having worked in the industry for many years, it looks pretty good for our area.

The information will be available to ENEXP and Halcon immediately because they're funding the project and eventually it should be available to other companies somewhere down the road and for a price. I did not ask him if individual landowners would be privy to the information but since you're leased with ENEXP I would ask them.

Hello. I asked them and individual landowners are not privy to the information. Chris Crawford