A company has made an offer to purchase my interest in the following:
Purchase of oil and gas mineral interest 1/3 of 10/110 non participating royalty in the North 110 acres of SW/4 of Section 35, Block 32, T3N, T&P RR Co Survey, Howard County, TX
I have no knowledge or experience in this matter, if anyone can advise or explain how I should proceed it would be appreciated.
This link will open the Texas RRC GIS Map Viewer on your section. Please note that there appears to be a producing horizontal well along your west section line. You did not mention if you are currently receiving payments from your non-participating royalty. If not, you might have royalty money in suspense.
Thank you for your response. I am not currently receiving payments. How does one check to see if royalty money is in suspense?
hi jstall, from the well plat map, it looks like Section 35 is not involved. Probably no royalties to chase after.
Thank you for the information.
Personally, I’d get some advice on that. There’s a lot of activity in that area. We have several properties just over the Borden line. I’d be very careful selling anything in Howard, just on principle. Usually, the potential buyer knows a lot more than you do.
That is really good advice from Brucebowe
By someone making an offer, that means they consider it worth the risk to make the investment. The Texas Railroad Commission’s sight can be helpful. If you can make a trip to the site itself, it’s good to visit with neighbors and see what they know about oil production in the area. A mom-and-pop country store can be a good starting place to find out what’s happening in the area and what are the future prospects. Before making a final decision, it might be good to visit with a good, local oil and gas attorney. He would likely know a lot about the current oil play, bonuses and royalties being paid, etc. He could help evaluate if selling is a good option. He might charge $300 for a visit, but given the amount wells can generate, it may be worth it.
Thank you, I agree with you, I just don’t know where to go for advice.
Thank you for your response.
My thoughts:
If you live anywhere near the site, drive there and poke around.
Contact Laredo Petroleum and ask them about the Memphis Flash 39-37 lease in Howard. If you get a friendly person on the phone, probe for a little information on 35 and nearby sections.
With that information, you can maybe make a more informed decision. I’m certainly no expert. If you really want to know, you will probably have to get a Landman or lawyer look at the deal. Of course, the RR Commission map does show you interest, Also, I am looking at the RR map and it doesn’t show the well in the same place as the drilling permit.
That’s about all I can say. I’m in a different petroleum state (Calif) from there. A local person should look at the for you.
Thank you for the response, I’ll certainly look into it.
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