New To Me

Recently received contacts from a Landman wanting to acquire an oil and gas lease for interests I apparently have in Tyler County. This is new to me and must be something from a long time ago. Site is: Ellsworth District, Parcel 2-12-32, 29.66875 Gross Acres and 0.01717 Net Acres. Sure do not know what all of that means OR how to proceed OR what it might be worth for leasing or selling. Any thoughts?

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Permalink Reply by Nancy Mosley on August 3, 2022 at 11:05am

Ellsworth District in Tyler county is in the northern eastern part, and Tax map 12 area is in the far eastern part, adjacent to Wetzel county, probably to Green district in Wetzel.

Antero is very busy drilling and probably leasing in that district. I haven't kept up with specific parts of the district but your tract is probably near some current activity.

About specific numbers for leasing or selling, I am not sure.

One thing, a small part of a larger acreage is more valuable to the company than a smaller acreage tract.

Hope someone else can add to this.

Permalink Reply by Lisa McKenzie on August 3, 2022 at 11:37am
Ask for their title work, so you know it is yours.  They will probably offer you $500 per lease as a signing bonus to get your attention because your interests are so small.  The last time I compared selling to a lease signing bonus, the difference was only about $1,000 per net acre, so we leased for 5 years.
Permalink Reply by Dwight Talbot on August 3, 2022 at 6:28pm

Antero Resources has a permitted well that looks like it will go right through your parcel.  It will be part of the Forester Unit 1H.  The permit is preliminary at this point and will be expanded to show a longer length before they drill.  The API # of the permit is 47-095-02803. I have attached a PDF showing your property on the tax map and your property in relation to the filed permit on the state permit map.  

My advice would be to hold on to the parcel and negotiate for as much of a bonus payment they will give you, as high a royalty percentage (like 16-18%) as you can, and demand a Gross Proceeds lease that specifically says they cannot deduct "post production expenses" for both oil and gas.  

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Permalink Reply by Orien O'Dell Hall II on August 4, 2022 at 3:16am

Thank you Nancy, Lisa and Dwight for such quick and informative responses. The information you provided will really help.

Seems like my portion is very small. I will start working on this right away!

Permalink Reply by Orien O'Dell Hall II on August 5, 2022 at 4:39am

Anyone familiar with the broker - US Mineral Exchange?

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