My late spouse (passed in 2020) inherited oil and gas properties from his father who passed in 1968. His dad traveled all over US making oil deals in the 40’s, 50’s and early 60’s. So, occasionally odd offers have shown up that he had no knowledge of. He understood most of the stuff that comes in. I don’t.
I recently received an offer of $8,400. to purchase an overriding royalty of “1/3 if .011562% of the NW/4 of section 1, block 8, University lands survey” and an "overriding royal of 1/3rd of .003513in and to the S/2 and NW/4 of section 37m block 5, University Lands Survey, Andrews County, TX.
I checked unclaimed property in Texas and there are some revenues from 1887 to 1989 posted in the last 5 years from Bepco, LP, which is an oil and gas company according to LinkedIn. It is headquartered in downtown Ft. Worth, TX. So is the company making the offer. The offer includes a tract in Reagan county, TX.
I don’t know enough to know if it’s a good offer. How do I figure it out?
Do you have 1/3 of .0011562 or 1/3 of .011562 percent? Because the first one is 100 times the 2nd. I’m assuming its the first.
There are rigs drilling Horizontal wells in Sec 1 of UL in Andrews as we speak. Same rigs are hitting Sec 37. It’s a fairly good place to own stuff.
Its $8400 TOTAL? On the surface that does not sound like a good offer to me. It looks like you might have 9NRA in those two sections and that would probably be a 6-figure amount. IMO. I might be totally wrong, just glanced. But I would not run off and sell your stuff. Somebody in the “Directories” or “Administration” portion of this board can probably at least do a high level look at what you have and give you some professional guidance for reasonable fare.
And its possible your Reagan stuff has value as well, would depend on location.
Can you give me some info on any activity in these 2 tracts? All of the east part of survey 110 block p SAM NIX ORIGINAL GRANTEE ABSTRCT 1348 S.F 9380 LYING ADJACENT TO AND NORTH OF SECTION 1 BLOCK UL LANDS 37.88 ACRES and the notherwest 1/ and the west sixty acres of the notheast 1/4 of SECTION 8 BLOCK 47 PUBLIC SCHOOL LAND containing 220 acres.Hard description for me to understand so any info would be greatly appreciated
I double checked those royalty percentages in Andrews County and they match the offer letter.
I had an offer late last year for all my Reagan County assets. The specific one these people want to buy is an “undivided 1/3rd if 2/480 mineral interest in and to all of Section 234, Block 1, A-197, T&P RR Co. Survey, Reagan County, Texas”.
Is there a book or website that explains how all of this works? I have this mail offer, a division order and a class action suit for Coal County, OK.
For instance, don’t have a clue the difference between “overriding royal” and “mineral interests”. I don’t know what a division order is, either - nor do I know what I’m looking at on the RR Commission site.
Yeah there probably isn’t a book or website that explains how it all works. Most situations are unique and there isn’t one correct easy answer. I may not understand exactly what you are looking to have work out. It might be worth a few hundred $ to sit down with a service provider here and go over what you have going on.
There are a decent # of Hz wells producing in your Reagan section.
Overriding royalty means you get a cut of the proceeds from anything associated with that lease, but you do not own the mineral rights. If the lease is held by production, and will stay held, then there isn’t much difference between an ORRI and the royalty you get from your mineral rights. But if that lease expires, the ORRI disappears. Mineral rights aren’t expiring. In MOST cases in the Permian an ORRI is just like a mineral royalty. You get whatever % of the proceeds.
Division order is a document sent out by the operating company and shows what % they believe you own in a well.
I contacted the company with the division order and they told me to send documentation to the Oklahoma County. I went to the courthouse and ordered it. They said it would take about 2 weeks. They will call me.
Long Story short - my spouse’s father was a broker. As I understand it, he had access to confidential information about likely oil property. He would buy leases and resell them them and keep a cut of the “deal”. He did this all over the U.S. in the 50’s and 60’s.
Over time, records were lost. His sons had no idea what his father held. Occasionally, someone would do enough research to find them and they would sell the interests (free money!). They had substantial holdings in Williams county, ND and they had no idea.
This Andrews Co. TX property is like that. They had no idea, as far as I know. Of course, my spouse has passed, as has his sister. His brother has substantial cognitive problems, as I understand it. I talked to him at Christmas and he said he had some memory problems.
On Texas unclaimed property from companies like Legacy Reserves Operating (now owned by Revenir Energy), has send checks for the father, but I have no idea what the property is, or where it is, or if it’s still in production.
I would be happy to pay someone to tell me how to sort this out, but I have no idea of who to ask. There is a possibility that there really isn’t much out there, or there could be a lot and I don’t know how to find out.
You might try starting with a search on www.Texasfile.com. It is relatively inexpensive to search. Also search the tax files in the county of interest.
If you have checks or tax records its a lot easier to figure out where you own. As you know where to look (i.e. you have a well name). Otherwise you are stuck searching county courthouse records (usually digital) for mentions of your spouse’s father to see what/where he had things going on, and then you have to figure out if he still owns it. There are a lot of counties out there. That seems really hard.
In terms of these things in Andrews and Reagan it’s fairly easy. Because you have offers and know where to look. Somebody can look at tax records, figure out your ownership, and make some estimation of what it is worth.
On other stuff I would guess you are probably just stuck waiting around to see if people make you offers.