I have SEEN the 4D mapping of all of Reeves, Culberson, part of Hudspeth, Loving, Ward, and most of Pecos counties that Chesapeake did about 7 years ago…so I KNOW where everything’s buried.Some of the stacked shale plays go 8 deep in places…but most are 5 layers…a few only 3 layers. But, there’s LOTS of production all over Reeves county… …yet undiscovered and documented.
Do not listen to this guy he is giving you all bad information. NO ONE is going to pay you $25,000 an acre for a lease. The most I’ve seen was around $14,000 and that was a 3 year plus 2 year extension.
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CHK paid $27K per acre in Claiborne Parish, LA several years ago. It was big news at the time.
Chevron paid over $50K per acre in the mid 1970’s. That was a funny story.
Best,
Buddy Cotten
I also am in BLK 13 Tract 271. Where can I find out how that section is doing.
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You’re literally comparing apples to oranges. One is a totally different area and the other was when the oil and gas crisis was going on.
“If you were to sell there is nowhere you can put your money that will match the returns & tax advantages that come with owning an interest in the Southern Delaware Basin.”…Spivey
I’d ordinarily agree with you Mr. Spivey…but Hudspeth county where the newly named part of the Delaware is now Orogrande Basin…is a continuation of the stacked shale play but has a big concentration of Pennsylvanian oil and gas, that a company named Torchlight is currently mapping the boundaries for and plan a massive drilling program there. (and Clayton Williams may be a silent partner or operating under a pseudoname there). The kicker is that the surface land if still available at under $500/acre and minerals can still be had for $3000 to $8000/NMA. So, if Mr. Johnston did sell his minerals and/or surface…he COULD pour the money into surface and minerals in the Orogrande Basin and still come out with a very lucrative investment he is sure to make a handsome profit on. That’s just my opinion/observation…not a recommendation. He’s better off to hold on to what he’s got and wait for the lucrative offers to come to him…still recommend holding out for $25,000/NMA there.
What tax advantages are you referring to? As a mineral owner we have to pay our standard tax bracket percent on royalty payments, unfortunately!
Selling is taxed at the capital gains rate, but royalties received on producing Minerals are taxed at your normal rate for whatever bracket you happen to fall into.
Cam