It’s two tracts lots 31 through34 of block ,11 of the good luck colony subdivision 40 acres and another block lot 48 of same subdivision consisting of 5 acres. Chesapeak energy has producing wells on the average. We own mineral rights ,not surface rights. The royalties are divided among the heirs. This is all located on the Brisco Ranch in the eagleford shale. According to our tax statements their are 10 different units. Henrichson units and McFadin units . We were wishing to sell our part but have no idea what they are worth. Checks have been down recently. But future projections for the area are good. How do we find out the actual value of what’s there?
I am a novice but have a very small (7 1/2 acre) interest in the vicinity in the Snowmass Unit in Dimmit County. In 2014, monthly payments were around $5,000. Those gradually diminished to the point where payments stopped late last year. One thing I never really considered was the possibility of new wells or horizontal wells crossing the property. It turns out they were drilling horizontal wells and stopped production on existing wells during that time. I signed a well sharing agreement this spring and the first monthly payment in April was close to $10,000. Horizontal well production drops off rapidly and last month was down to about $5,500 and will continue to decline. This may not help you determine a value but hopefully emphasizes that even a small parcel can yield substantial income. Every month I get offers to purchase that mention amounts over a very wide range. When I follow-up, the high estimates are typically bogus and are simply there to initiate a conversation.
Thank you Andy Lewis for your reply. I’m also a novice regarding this subject. Looking forward to learning. Your reply helped me form a question to Chesapeak regarding the Wells ,production,future payments and horizontal drilling. It’s a start.