barnett shale: Money Ain't Everything - 04/09/08 05:52 AM
I recently spoke before another HOA group who was interested in becoming a group so they could negotiate a better lease for their minerals.  I definitely support their idea about joining forces. There is power in numbers, especially in the Number of Acres you can offer to a company.
However, there are many lease terms that can be equal to, OR GREATER THAN, lease bonus when it comes to long term valuation. 
If you live in nice area in a big home the amount of bonus you are going to receive from a gas operator to lease your 1 or 2 acre … (1 comments)

barnett shale: NEGOTIATIONS AND MONEY - 01/04/08 02:28 PM
I have looked at many leases for friends and associates in the last few weeks.  It seems everyone is getting lease offers in the mail in the Tarrant and Dallas county areas.  This Barnett Shale activity is really heating up and the amount of urban leasing is reaching levels never seen before in the industry.
Most of the leases I have reviewed were not what I would expect to receive, neither in cash for the signing bonus nor in the amount of royalty to be paid to the landowners.  But putting the money aside, there are a lot of things to consider … (1 comments)

barnett shale: Downtown 4 Lease - 12/31/07 11:32 AM
Well, it isn't just HOA and Neighborhood Groups that are getting together to negotiate mineral leases.  It was just announced that the Downtown Business District is trying to get all of its members together to negotiate for the mineral rights as one group.  The Central Business District comprises about 800 acres and only about 10% has been leased so far. 
Why are the downtown landowners getting together.  For the Same Reason homeowners do - MORE $$$$ AND BETTER TERMS.   Not really too surprising, is it.  When you look at the potential to have up to 20 wells, yep that's 20 wells, … (0 comments)

barnett shale: Want a larger ROI - 11/25/07 01:39 PM
A lot of people are into RE investment.  Even I have some invested money in Real Estate.
The one thing I am always looking for is a better Return-On-Investment (ROI), or Cash-on-Cash if you prefer.  All that means is that I want to make a little more money from my money.  A Bigger Return on My Investment.
There are several ways to work this out.  One is obviously using leverage to get the most out of your limited funds.  Let's say you have $10,000 and use it as a downpayment for a $200.000 piece of rental property. Let's further assume that your mortgage, … (0 comments)

barnett shale: Show me the MONEY !!!!!!!!!! - 10/24/07 04:31 PM
Well, the leasing goes on. 
While people who already have leases and active wells are having trouble getting their checks (see past postings), the feeding frenzy for acquiring leases is getting stronger and stronger. 
I have been giving free talks to homeowner associations about the Barnett Shale.  Obviously, I am trying to get my name out there as a knowledgeable realtor, but I am also trying to educate the public about the O & G industry and how things work.  And it has obviously been working.
When the leasing began most people with a normal house lot were getting about $250-$350 per … (0 comments)

barnett shale: Oil and Gas 102 - 07/04/07 01:12 PM
Well, did anyone go in the backyard and pick up a rock to look at.  Being a geologist I am kinda partial to rocks and I do like to look at them once and awhile.  When you really look close they are amazingly intricate.
If you could break open a sandstone rock in your backyard and use your Super Vision you would see an intricate design of silica grains (little bitty sand grains) held together by something akin to cement.  This sandstone would be as hard as a rock (ha, ha) and looks very solid.  But down deep, at the microscopic level, … (1 comments)

barnett shale: Oil and Gas 101 - 06/20/07 10:55 AM
Do you think oil and gas flows underground in rivers and streams?  Don't feel bad, many people do.  The truth is that if you go outside and pickup almost any rock in your backyard you will be looking at an example of a reservoir rock for oil and gas.  With very few exceptions what you have in your backyard is an oil and gas producing rock somewhere in the world.
I wish the rivers and streams idea were true.  For one thing we would make bigger wells and another is that we would produce almost all of the oil or gas that … (4 comments)

barnett shale: Part of the land value is underground - 06/19/07 03:34 PM
I know that everyone is used to valuing a real estate deal by what they see
Location, Location, LocationThe SurfaceThe structuresWaterfront, etc.However, the people I am trying to deal with in North Central Texas have another item to consider when they are looking to buy land,  THE MINERAL RIGHTS.
Right now one of the major drilling booms in the country is happening right in the back yard (and front yard as well) of the people in Dallas, Fort Worth and surrounding areas.  Many know about it but many more do not.  That boom is the Barnett Shale, a very tight shale, that contains … (3 comments)

 

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