Found out that I own mineral rights in NE/4 SECTION 6 BLOCK 36 T4N AND S/W4 SECTION 5 SECTION 36 T4N IN DAWSON COUNTY . Anyone know what the going rate per acre for leases and value if we sold them alright? Thanks in advance for any info
Hi Chester,
Welcome to mineral ownership! I agree, that’s a great area of Dawson to have minerals right now. My first advice would be to hold on to them to see if a well or two gets permitted on your property in the next couple years. That alone would roughly double the value and expand the number of interested buyers.
That said, oil prices are rising and personal finance is indeed personal and based on your unique finances. If you wanted to sell, shop it around, get a few offers, and negotiate like it’s a used car (huge swings in asks/offer is normal and expected). CGS (AKA, EOG) is drilling additional Stonecreek wells right next to you, which should make it easy to sell and ask for a good price. $4k per net acre is a decent target but with the proximity to drilling and high oil prices right now, I’d start at $6k or higher.
Are you receiving royalties on the BERTA VOGLER 1H from Cholla Petroleum? Based on your description, this well should be producing some of your minerals in Section 5. Here’s a map of the area with your acreage described highlighted. Dawson Activity - Jan 2022 - chester.pdf (3.0 MB)
2 Likes
Thanks Tracy, we are new to all of this but intend to get up to speed soon. As far as the Berta Vogler 1H well we were under the impression that was a disposal only well .
Any Help or Advice would be greatly appreciated. The mineral lease is up to renew by the end of March .
Ah, I see, there are two wells there. The TONTO SWD 1 is the salt water disposal well that’s active, but the BERTA VOGLER 1H looks like it last produced in 2016. It only produced for 13 months so I can’t imagine it produced much, but you should have received something if you were an owner between 2014 and 2016.
I would just hold tight and see what happens in March, unless you’re hurting for cash. I can’t see them drilling offset to open acreage by letting your lease expire without doing anything, so I can only imagine you’re either going to get renewed, an “[oops] please ratify this late renewal” letter down the road, or another company swooping in to try to lease.
2 Likes
Good Morning Tracy, quick question we have been offered 4500 per acre for the royalties for our 160 mineral acres on NE/4 Section 6 block 36 ? What do you think ? What do you think the value is in this area ?
Good morning! Honestly, I’m advising everyone to hold tight to their minerals a few weeks to see what happens with commodity prices. Any offers you’re receiving are based on ~$80 oil and WTI crude is currently at $119. There’s just so much uncertainty right now.
If you really wanted to cash out now…I’d ask for at least $7000 per net mineral acre.
1 Like
I think Tracy is correct. Hold tight for a while. How many mineral acres do you own in the NE/4 of Section 6 and the SW/4 of Section 5?
I agree with hold on before selling…. Especially in these current times.
1 Like
This topic was automatically closed after 90 days. New replies are no longer allowed.