Oil and gas lease activity is robust at this time in the Eagle Ford shale of South Texas with several oil and gas companies leasing lands and mineral properties. The Eagle Ford shale covers millions of acres of South Texas, so, there is still quite a bit of open land to be leased. We are all hoping that this shale play turns out good in the long run. It's too early to tell yet. Some of the wells that have been completed thus far are coming in well but the oil and gas production is falling rapidly. Same as they do in the Haynesville shale play. However, wells in the Haynesville shale are better, meaning that the reserves per well are higher. Plus, the initial production rate (IP) is stronger. Yet, the Eagle Ford does have a feather in its cap and that is that it produces more natural gas liquids. And in the updip parts of the play (lying more northerly), even crude oil is produced. At this time, it's a good thing, because crude oil brings a higher price than the equivalent dry natural gas.
Oil and gas companies are getting multi-year leases in the Eagle Ford shale and, rightly so, as the play is so big, it will take years (actually, decades) to drill it up. That's assuming that all goes well and the wells hold up. Plus, assuming that crude oil price and natural gas price does not fall. Which it's certainly subject to do. In fact, if natural gas price does not rise dramatically pretty soon, it will definitely cause the number of active drilling rigs to fall. With today's natural gas price, oil and gas companies can barely squeeze out a profit. They're hoping the prices rise soon but I don't know anyone who has a crystal ball regarding oil and gas prices. Who knows!
Lease bonus amounts vary widely. There are many reasons for this... proximity to a producing well, proximity to a pipeline, lay of the land, identity of other oil and gas company holding leases in the same area, number of mineral rights owners or heirs to the tract, competition from other oil and gas companies, etc. Leasing has been going on for a few years already and those who leased early did not enjoy a big lease bonus. Although, there is nothing sinister going on here with the oil and gas companies. The play is only now proving itself worthy of higher lease bonuses. It's just the way the business works. A mineral rights owner who "holds out" might get more lease bonus later but he also runs the risk of getting less or getting zero. Oil and gas exploration is a very fickle business and it changes rapidly!
If you own mineral rights in the Eagle Ford shale and seek an oil and gas leasing company to lease your minerals, please visit this site -- OilGasBids.com, oil and gas lease offers or contact us directly via our Contact Page.