Concerning 40 acres out of a 160 acre tract being:
Sec. 44, Blk. 58, PSL Sy., Reeves County, Texas, A-4189
Any info regarding the going rates in the area would be greatly appreciated.
If they offer you 5-6 times that amount, don’t sell!
We're the last holdout in this tract and I don't believe they'll give us a lease, but instead are only seeking to buy. They are an actual operator (as opposed to a "lease flipper" and the like, but they don't have any operations in the area that I can find.
I’m sure others will respond. But if it were mine, I’d hang onto it, even if they were offering a lot more than $1,000/acre. Just my opinion.
Below is a well map of the surrounding area. I'm thinking you're correct. I really appreciate the input.
Reeves County is one of the hottest spots in the nation right now. Heck, I wouldn’t even lease it for that price! And I’m willing to wager a small fortune that’s what most on this site will tell you.
Taylor, you should have heard loud and clear from the forum, don't sell. While the drilling activity has not started in your area, as the wells expand throughout Reeves eventually you will probably see leasing and drilling on your property. Looking at the time from the beginning of the increased interest in Reeves to now I would estimate you will approached within 3-5 years, possibly sooner. I'm not trying to lead you to depression with that estimate, I just don't want you to wait a short few months for a lease, not get one, then sell (for any price) and within 5 years someone drills and gets what should have been your royalties for the next 50 years.
Sarah
Taylor,
I agree with Linton and Sara. These folks wanting to buy your minerals know something you don't know. In the next 20 years you could possibly reap $100/$200 thousand dollars and possibly more from these minerals in royalty and you would still have the minerals to pass on to your children/heirs. Wouldn't that money look better in your bank account than in someone elses?
Clint Liles
I was recently offered $3,300/ net mineral acre. I am also curious how much they are really worth!! Anyone know how much recoverable oil per section is anticipated. On an earlier post on this forum,
Comment by Stephen Long on March 18, 2014 at 3:28pm
Well said, Lynn. No telling just what kind of recoverable reserves lie under our acreage in Reeves County. The numbers publicized by several of the oil companies are varied, but all significant. Ranges of 200 million to 400 million barrels of oil in place per section. Just a matter of what percentage will ultimately be recovered....and drilling and completion methods are improving out there each month.
Taylor - There is a pemit for a Petrohawk horizontal well just a 3-4 miles SW of your acreage, so there is some activity already in the area. Believe me, I understand cash right now is an appealing incentive, but there seems to be pretty good potential for improving values and drilling activity throughout much of Reeves county. Good luck.
I would never sell, unless you absolutely have to have the money. If you do have to sell, start at $20,000/acre.
In May, 2014, our family was offered $9000 per acre for minerals in Section 17, Block 5 of Reeves County.
We just got an offer in the mail of $3000/acre: Sec 8, Blk 55, T&P, Reeves.