My wife and I received a letter from an oil company in the mail telling us that thru my wife's grandfather that we are owners to mineral rights in Reeves county that we had no clue about. Seems like the oil company is moving fast and after a week of finding us have sent us a paid up lease agreement. We have rights to section 15 block C-. 320 acres. The mineral rights were split between our family giving us our share (26.5 nma). Their initial offer is a three year primary term of $50 per nma, 1/5th royalties on oil and gas production and a two year extension at $75 per nma, I have lived in West Texas all my life and have been told that this is a very low ball offering. Any help or advice would be appreciated.
This article may be helpful. Extremely low.
http://www.mineralrightsforum.com/profiles/blogs/i-may-own-minerals-so-now-what
The block number is incomplete in your description, so there is no way to determine where the mineral acreage is located in the County. But I would venture that $50 is way, way too low. Minerals I leased a couple of years back in Block C-17 and C-8 leased for $800 / 23% royalties and $750 and 23.5% royalties. Most of the C-xx blocks are in productive areas
Donny Thanks for you input It is block C-1
Donny Hamilton said:
The block number is incomplete in your description, so there is no way to determine where the mineral acreage is located in the County. But I would venture that $50 is way, way too low. Minerals I leased a couple of years back in Block C-17 and C-8 leased for $800 / 23% royalties and $750 and 23.5% royalties. Most of the C-xx blocks are in productive areas
I would like to talk to you more about your interest. Please message me