As far as selling minerals, recently turned down $25,000/acre with surface in Orla. It is very dependent on circumstances and location, but if you do a discounted cash flow analysis it is easy to come up with figures well north of $15,000/acre. Google discounted cash flow analysis, and you will find several online calculators. The assumptions you choose can be tricky, but this was based on conservative assumptions. Reeves has multiple pay zones. The play is still in its early stages. Only a small percentage of the area has been developed. These are sophisticated risk takers who are out ther buying minerals. The bottom line, in my opnion, is do not sell minerals unless: 1) you need the money now; 2) you need to sell to diversify your asset base; 3) you have small acreage position and do not want to hassle with managing it, and cannot afford to get good advise on negotiating leases; or 4) you are convinced the shale boom is a bubble and will eventually go away. I see situations all the time where people who acquired minerals in the 1920ās through the 1990ās are making more in royalties each month than they paid for them. Even if we made huge strides in alternative energy, it would take decades to replace all the different machines that use oil and gas. There is always the chance that some energy source could be developed that could render minerals near worthless, but I think the last 100+ years of experience, plus all the exisiting oil and gas burning machines that would have to be adapted or replaced, would soften the blow and spread it over a long time. Admittedly, this comes from a strong bias not to sell minerals. But you own a finite resource. They arenāt making any more land. I see the long term prospects for mining and agriculture as very bright. The question is whether you can withstand the short term cycles. Many cannot, and this is understandable. Also, the increasing fractionalization of mineral ownership is a problem to be addressed. I will end my rambling. Just keep in mind that the $4500-13,000/acre prices we are discussing today, are for minerals you could have bought for $500/acre 10 years ago, $100/acre 25 years ago, and $2/acre 90 years ago.
Wade, I would have been willing to buy you lunch for all that you have shared in your comments below. Very timely, thank you. You answered exactly the question that was on my mind. I recently received another letter offering $10.5K per NMA to buy some of my mineral rights.
Very positive article regarding IHS analysis of Wolfcamp Deleware activity.
Does anyone have information on Block 59, Section 16?
Helen,
I donāt see any activity in the area of Reeves Co. Block 59/Section 16 but I did find a Completion Report on a well next door to the N/E in A-2553. Well named Atlantis 59-10 1H was drilled in 2013 by Energen:
http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?methā¦
Clint Liles
Helen,
GIS Map of Reeves County Block 59/Section 16 and surrounding area:
Clint Liles
I heard from a reliable source that BHP was considering spinning off their interest in Reeves county.
VERY good readā¦ Permian Perseveres
By Steve Toon || Hart Energy
May 1, 2015
[http://www.oilandgasinvestor.com/permian-perseveres-793381#p=full](http://www.oilandgasinvestor.com/permian-perseveres-793381#p=full)
Far West Texas, below the New Mexico border, is considered one of the most remote regions of the country, yet on a spring day in March you wouldnāt know it.
Have a fine holiday weekend! Later ā Buzz
I have a .015234 interest in Ayers well in sec 24 C9. I have been offered 260,000 for my interest. Only getting 900.00 per month off of it. Is there something going on that I do not know about to get such a huge offer?
howdy, i am hoping someone here may share info re finding Landsmen who are active presently in reeves, county. i own 84 acres in BLK C-8, SEC 6 PSL OUT W/2. Does anyone have the names or possible contact info for landsman.? i would appreciate any leads. our last ābonus leaseā expired a yr ago august. Miller brothers out of pecos did not pick up the 2 yr extension :(. so i have been waiting while my fellow undivided-acreage owners (304 acres) seek a decent new Lease. meanwhile i feel out of the loop re info on landsman who are currently active in my area. the location is 19 miles west of pecos, and i think just a coupla miles south of i-10 there at toyah. and i dont really know what the gong rates are lately. i appreciate any info or questions that will help me put a deal together. any leads or ideas are much appreciated. i sure miss that 3yr bonus & 2 yr extension. thx
Texas GLO ā Sealed Bid Sale, August 4, 2015
Sealed bid sales are being handled differently than in the past:
[http://www.glo.texas.gov/what-we-do/energy-and-minerals/_documents/...](http://www.glo.texas.gov/what-we-do/energy-and-minerals/_documents/oil-gas/sealed-bid-sales/Lease-Sale-Update-EnergyNet.pdf)
27 Reeves County Tracts being offered:
[http://www.energynet.com/govt_sale_listing.pl?sg=1554](http://www.energynet.com/govt_sale_listing.pl?sg=1554)
Later ā Buzz
Any information on Section 10, Block 5, H & GN RR Co. Survey? Have received an offer to lease, 3 yr. with 2year option. Am wondering what the going rate is at present. Thanks.
Hi Mike, I just got a call from Jason Martin out of Ft. Worth. 817-751-8717 He is a Landman working the area. I have just 6.1 acres and he offered $5,500 per acre to buy. The current lease runs out next year in August.
Hereās a new article about BHP in the Wall Street Journal regarding their domestic oil business interests:
http://www.wsj.com/articles/bhp-billiton-projects-us-2-billion-petrā¦
Offer is from Shaw Interests, Inc., $2500.00 bonus per net mineral acre for a 3 year lease with a 2 year option, 1/4 royalty. My part of this section is very small but Iād like to get the best deal I can.
Craig, I wish that I had read your comment a couple months ago. We leased some acreage in Blk 2, sec 20 for $3,000. This is about 1 mile north of you. Maybe we can get some drilling in here somewhere.
Evelyn, we have an interest about 3 miles west of you that is coming up in a few months. Since Rosetta sold out, I would be interested in who your offer was from?
another thing for Evelyn - donāt go for a 3/2 contract. go for 3 only, and no charge back for any delivery charges. with some more acreage in Block 4, we got a guarantee to drill in 2 years. Donāt know it it will happen, but they pay us $500 per acre if they donāt drill
I still have 3.33 acres for lease in C-8, SEC 26. Anyone have any knowledge about anything happening in that area?
Evelyn, Can you provide info on terms of offer? It is helpful to others in area to compare terms and respond on rates.