Hi everybody:
So glad this site is here! I have a 1 acre mineral lease from 12/29/15 with BHP Billiton that gave me a $2k bonus, 1/4 part and no production fees. I have not received any additional payment.
In the last 3 months I have been getting multiple offers to purchase these rights. Some stating up to 14K others 20K plus. I finally called one of the people that actually called me and got an offer of $7K. I see purchase quotes that widely vary, but seem to be trending upward.
1) Should I just keep this parcel and wait for a return?
2) What could I reasonably expect from 1 acre if it starts to produce?
3) Is $7K a lowball offer to purchase an already leased acre? Some of the letters I have go were up to 20K per acre.
Any feedback is appreciated!
Todd
Sections 25 and 26, block 76 Public School Land Survey A-879 A880 Loving County, TX
Mr. Peters,
Below is likely why the increase in attention. Your tract is in blue, and the one to the left/west. Those are a lot of permitted wells. The horizontal drilled to the east is a nice well.
As to whether or not to sell, that is your call. Some of the members on this form will be more helpful on evaluating worth.
Best Regards,
Mike
Todd,
Generally speaking, when someone offers to purchase your interests, they are doing so to make a profit. Oil and Gas investors are more likely to pay a premium than someone that is looking to buy from you and sell to an investor.
If you had a larger interest I would gladly put it to my group but they are seeking much larger acreage amounts.
Regards,
Dean
Thanks for the information...so much to learn!
Hello, Todd Peters. I am in a similar position to you, i.e., own about 1 nma out of a 2552.7 acre lease (25% royalty) to EOG (just signed). They already have multiple drilling locations with 2 mile laterals in the Wolfcamp already permitted. Did you ever get your mineral acre sold? If you did and can pass on the details, I would be most grateful. I am new to this site, so I really don't quite know what I'm doing yet.
Our lease covers sec. 25,26,35,36, Blk. 76 PSL, Loving Co. EOG has 2 producing Wolfcamp offsets that terminate just a couple hundred feet south of the south line of our sec. 35. Both were completed in mid-2016. TRC completion reports for each well's 24 hr. IP are: 1) lse #48158 = 1882 BO + 2958 MCFG; 2) lse #48164 = 2477 BO + 3483 MCFG. These 2 drilling units have made A LOT of oil to date.
All the best, Ken
