Texas American has leased our 55 acres (pooled with neighbors). They are currently drilling on the other side of our road and permitted back in November to drill 3 wells on our lease. I saw the permits on the tx rr commission gis viewer. Their landman says they’re planning to move the rig across the road to our property when they’re done, but he doesn’t know their exact schedule. Then we received a formal offer to buy our mineral rights from Caddo Minerals for 10k per net mineral acre. $550,000 is a lot of upfront money. If Caddo is offering that, then I assume they expect to make at least double that over time. They said they base their offer on what we would make over the next 5-7 years. So I have 2 questions: Is this a low offer? And is there a way to determine how much we will make if we keep our mineral rights? Thank you
Could you provide the legal description or unit name? I’ll look it up for you.
Yes it’s being called Harris North B Unit. On the texas rr commission website it shows 3 wells. 103 104 and 105 being permitted. API 01335946, 01335947, 01335948
Harris B unit is being drilled as we speak. They are on the 2nd well. Should be moving rig to drill final well in a few days. I too received a buy out offer from Caddo. 500k for my 50 acres of mineral rights. Mighty tempting offer but I suspect it worth more than that. So, I’m not “sold” on selling my mineral rights.
Hi Humberto! I’m your neighbor Ric. South of you is Raul, then my dad Edward, then me. (We dont live there anymore just own the minerals). So wait, you are saying they are already drilling on our lease?? You’re sure about that? Wow!
Hey Ric. Yes. Been talking to Mr. Harris. He has kept me up to date on the goings on . I’ve also been keeping tabs as I go by the drill spot . Exciting. Back to original inquiry. I won’t sell my rights without knowing what it’s really worth. I think though in the long run it will be more than what is being offered by Caddo. But only time will tell.
Thanks! It’s super hard to tell, the offsetting wells to your East from Texas American are not great, IP’ing anywhere from 800 bbls/day (parent) to 77 bbls/day (most recent).
There is a rig on site and they look to be drilling right now. IMO Caddo is a pretty reputable group and based on how iffy the “MGS UNIT” looks to your East, 10K/NRA is not a bad offer. It kind of comes down to risk tolerance.
But no, it’s not a bad offer. They’re going to make more than 550K over the lifespan of the wells but the name of the game is would you rather have a large sum up front or would you rather roll the dice over time and bet on commodity prices.
Humberto, heard any updates?
Is this the unit between 140 and north of the Harris ranch?
Yes! On CR 341. How are you Benito? We were in the group with you, that hired Mr. Cowden.
Mr. Cowden is a great person.I didnt know this group existed.
Caddo is well known for buying interests, slicing them into smaller parts, and re-selling on Energynet, an online auction company.
Anyone hear of any updates?
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