Eagle Ford Shale
The Eagle Ford shale is a rock formation that is found several thousand feet below the surface in South Texas. It has long been thought of as a "source rock" for oil and gas reservoirs but recent technological developments have shown that it can also be the producing formation; it can produce oil and gas by using horizontal drilling and hydraulic fracturing.
In oil and gas terms, a shale play
is an area of land that oil and gas companies think might be productive for oil and/or gas. The Eagle Ford shale stretches from Laredo, on the Mexico border, to the northeast. At this time, to Gonzales county. Time will tell if it continues further to the northeast.
The blue ocean background of this website is indicative of how the Eagle Ford shale got here. Shales are deposited in a quiet, deep-water ocean basin. Over millions of years, marine life sinks to the bottom of the ocean and is buried by sediment. Over hundreds of millions of years, these sediments sink and the organic content becomes "cooked" or "cracked." In the updip (shallower depths below the land's surface) portions of South Texas, the organic content has not been cooked as much because it is not as hot as the Eagle Ford shale at deeper depths (downdip). Thus, oil and natural gas condensate is present updip and dry natural gas is present downdip, in the southern reaches. (The Eagle Ford shale dips to the south-southeast, toward the Gulf of Mexico.)
As for an economic impact, what the Eagle Ford shale means for mineral rights owners in South Texas is a bonanza.
This shale play encompasses several million acres and most of the play has already been leased by oil and gas companies. If a mineral owner has already leased, he will enjoy a royalty payment if oil and/or gas is found by drilling on his land or on the "unit" that his mineral rights lie within. But, again, this shale play is huge -- over 200 miles long -- and it will be decades before some areas are developed.
Eagle Ford Shale Oil And Gas Lease
As stated, most of this shale play is leased for oil and gas but there are still some open leases. Typically, mineral rights owners are not pro-active in seeking an oil and gas lease; the oil and gas business does not operate that way. Typcially, mineral rights owners simply wait for a company to approach them. But, with this play, currently in its own mini-boom, mineral rights owners who are seeking a company to lease their land might do some good with oil and gas consultants who have connections to leasing companies. (See Eagle Ford Shale oil and gas lease
Sell Mineral Rights?
There is another angle for a mineral rights owners in the Eagle Ford shale to capitalize on the boom, even if his land is already leased; he can sell mineral rights
and he doesn't have to sell all. He can sell 3/4 or 1/2 and enjoy a big cash payday and retain the other part to gamble on. Of course, it is well known that the oil and gas business is a very "here today and gone tomorrow" business sometimes. Meaning that one day, it's boom times and tomorrow, it can be a bust. So, nothing is certain. But, cash money is certain and selling a portion is a viable option for some. It's worth considering -- why sell mineral rights
. And if a mineral rights owner decides that it's worth getting serious about, here is an article on how to sell mineral rights
Selling mineral rights versus leasing mineral rights can also put more money in a mineral rights owner's pocket. A lease bonus, "signing bonus" is taxed as regular income, so, if it's a significant amount of money, the Federal tax, alone, is 36%. On the other hand, a sale of mineral rights (for someone who has owned it for over a year) is a capital gains and the Federal tax is only 15%. Which means that the seller ends up with far more cash. First, a sale brings more money than a lease and second, as just illustrated, the tax savings are significant.
Those who work in the oil and gas industry know how fickle it can be. It's described as a roller coaster ride and that's a good description for the up and down, boom/bust nature. It's maddening to those who depend on it and in boom times, it's maddening for mineral rights owners who get bit by waiting too long to take a good offer, whether it's leasing or selling mineral rights
Gonzales County, Texas
addition to the counties you see listed in our menu, we are expanding
our mineral acquisitions in Gonzales county, Texas. If you own mineral
rights or "non-participating royalty rights" near the following towns or
cities and wish to sell all of part of your mineral rights, give us a
- Cheapside, Texas
- Gonzales, Texas
- Nixon, Texas
- Wrightsboro, Texas
- Smiley, Texas
- Dreyer, Texas
- Glaze City, Texas
- Hamon, Texas
- Nickel, Texas
- Dilworth, Texas
several oil and gas company operators active (currently or formerly) in
Gonzales county, including Forest Oil, EOG Resources, Penn Virginia,
Marathon Oil, Lucas Energy, Santana Energy, Denali Oil & Gas,
Geosouthern Energy, Hilcorp Energy, Riley Exploration, Hunt Oil, Weber
Energy, Union Gas, Petrohawk Energy, ZaZa Energy, Strand Energy, Sharon
Hunter and Magnum Hunter. It doesn't matter what company owns your Oil
& Gas Lease, we can buy mineral rights from you. It also does not
matter whether you are receiving oil and gas royalty checks (royalties),
we can pay you a lump sum settlement for your minerals.
More To Come
In the coming weeks, we will be adding to this site to provide more info about the Eagle Ford shale, so, stay tuned!
If there is a question you would like to see covered here, please contact us