This topic, titled Howard County TX - General Discussion, is established here on the new MRF to serve as the continuation of what some of our legacy users became accustomed to - that of posting to what is generally called a “wall”. From June 17, 2018, this topic is the continuation of Howard County, TX - Oil & Gas Discussion archives (which is no longer accepting new posts)
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Ok I’m new here. Recently received a letter about someone wanting to buy my inherited oil mineral rights. If anyone could give me info on my section , if they are drilling or owe me a check or who’s doing what. I would appreciate it. I have looked and saw a Header well on our portion with two permits in the section above it. My rights are on : Abstract 1(263) survey name: TPRR. Block:32 , Township: 2N, S/2 1.
Karen - From the legal description you posted I think SM Energy has drilled and completed 2 horizontal wells that include your tract. They began producing in March so it might be another month or two before you get your first royalty check. The wells are the Farva A 4844WA and Farva B 4845WA. They are good wells, each averaging about 1,000 barrels of oil per day in their first 30 days.
Thank you @Marcus_T!!! @Karen_Leonard is my cousin Karen welcome to the exciting world of oil & great people that will help you learn every step of the way!!!
Very new to this site, my cousin it appears inherited some oil rights in Section 32, Block 27 Howard County. High Peak energy thru a land man is only offering 750 per acre, this seems low but not familiar with that area. Can someone explain where that section and block are and if its a fair offer. they are giving 25% so that seems in line what others have mentioned. thanks
Ed - that well is producing as I remember seeing it in April’s production report SM filed with the TRRC. I can’t remember how much it produced and I’m away from my computer but I think it was fairly strong.
Ed - Sorry just got back from a vacation. If you have an interest in the 2047WA well (API #227-39353), I have two bits of good news for you. First, there is also a 2048WA well in that same production unit. The wells are named O’Hagen 2047WA and O’Hagen 2048WA. The second bit of good news is that those wells have produced over 100,000 barrels of oil from mid-March to the end of May.
That is a ridiculous low offer!! Do not agree to that! There is drilling all over that area. Is this the first time you have been approached? That’s just crazy! I own in section beside yours and have several wells on it! I get huge offers to sell but I’m not going to!
I think we need to find out what companies are active around the area. Mine is all with Callon. Let me look into your section a little more. How do we pm on here?
I’m not sure where Billie is talking about but no section next to yours has several wells on it and Callon doesn’t seem to be active in your spot. I think Callon is mainly in NW Howard while the land you’re talking about is in the far NE part of Howard. So what Billie is talking about is probably 30-40 miles away (Correct me if I’m wrong though, there’s only one Section 32, Block 27 in the county)
$750 isn’t a terrible offer considering the area it’s in has had as many dry holes as it’s had completed wells that produce over the years. And none of the vertical wells that have been completed over the years have been anything incredible. I think just earlier this decade a lot of sections in that block were getting leased up for $250-$400 an acre but most of it never got drilled. The reason why companies are coming in and offering more right now is because the far west end of your block is seeing some really good production on horizontals that were drilled this past year. It’s been a huge play that has been slowly creeping east over the last few years but it’s not to Section 32, Block 27, H&TC Survey just yet. Also, 25% is good. You won’t get more than that.
I can’t tell you what you should be accepting as a bonus but I will say it’s probably more than anybody has ever been offered for that area, and that 3 years ago nobody would’ve touched those minerals for anything north of $500, and lastly if 1-2 bad wells are drilled a couple of miles west then $750 probably won’t be seen again in your section for a long time. If you own a bunch of interest then you’ll have some leverage on that bonus offer but if you don’t own much then you could ask for a little more, throw some clauses in there you like and then accept the deal. You won’t be making most of your money off the bonus if things work out. It’ll all come from royalties if the boom continues on east to Mitchell County.
Karen welcome to the exciting world of oil & great people that will help you learn every step of the way!!!