Mineral Rights Question

[badexcuse]

So we have 100% mineral rights for approximately 100 acres just outside of Tolar, TX (Hood County). It's in the Barnett Shale. Had a mineral rights contract just expire, and it hasn't been drilled. How would one go about best trying to get a new contract?

 

[hornian]

A landman will contact you.

 

[overmaars]

It was my understanding that if you own 100% minerals, they are held in perpetuity. You mean you had a mineral lease contract expire?

Was it not drilled because its not in play? Are you in a proven area where pooling or unitizing may be an option? A reputable, experienced Landman may not be contacing you any time soon. In the current market and especially in the Barnett Shale, good landmen have the luxury of cherry picking. You definitely don't want to end up with some yocal abstractor claiming to be a landman repping your deal. You may want to talk with an EnergyAdvisor or Broker to help locate a potentially interested operator and/or help you negotiate a legitimate deal.

 

[badexcuse]

You're right - an old contract just expired. Figured a landman is the best route given the small size of the land.

 

[CHIEFLAZYBOY]

BE,

We own a leasing company in the Barnett, the Tolar area is dead when it comes to the big boys (Chesapeake, Devon, EOG, and XTO.) The shale isn't thick enough to get a good fracture without getting into the Ellenberger (saltwater.) Quicksilver is the biggest producer in Hood county, but their production is in the eastern one-third of the county.

If ANYONE offers you a lease, I would seriously consider their offer. I would imagine your property will sit open for awhile. Sorry, and wish I could help more.

Chief

 

[wolfman]

CHIEFLAZYBOY,

Just curious since you are in the business, but my family has some land in Rains county just west of Lake Tawakoni that my grandmother used to lease the drilling rites out to for years up through the early 80s. I seem to remember her getting some nominal amount trom Exxon per acre for those rights. Do you know of any known oil or gas reserves in that area that might be explorable in the not too distant future?

 

[CHIEFLAZYBOY]

Wolfman,

That property is going to be east of the Barnett, and west of the Cotton Valley/ Bossier Sand/ Wilcox play of East Texas.

There will always be shallow oil just about anywhere, the problem is it will not pay in sufficient quantities to warrant exploration. That is probably the situation in Raines county.

 

[badexcuse]

Thanks Chief. Good information. That probably explains why the current company let the lease expire. If we get an offer, I'll post it.

 

[chitwood]

We just leased some land that my wife has partial ownership in in Montague County just south of Bowie. It was a pretty generous offer, so we're hoping to get lucky.

 

[CHIEFLAZYBOY]

Chitwood,

EOG has hit some good wells in Montague county. There is an oil window in the Barnett in that area, the wells will settle in around 70-100 barrels a day of oil, and will make 750,000 to 1 million cubic feet of gas a day.

Chief