We own 1/3 of a 40 acre parcel in Reeves County. In January of the year we entered a 3 year lease with Centennial, retaining a 25% interest in production. They have not drilled at this time. We are thinking of selling our 1/3 interest. We recently received an unsolicited
offer of $12500 per acre.I'm thinking that is well on the low side. Any thoughts?
John O'Neil
Hi, John -
It depends upon where your lands are located in Reeves County but, yes, that sounds a little low.
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
John - I found a past post where you mentioned your tract description. $12,500/nma is quite low for that area. It is in Section 6, Blk 50 T7S, right?
yes
Based on what we are seeing it is low
We had 100 acres in Reeves; Blk 4 Sec 31 - we had a few 3-yr leases. We just sold for 36k per acre two months ago. So - you should get more then 12,5, again depending on where …
We own mineral interests in Section 25, Block C-17, PSL. We leased last year for $4,500/acre. We have a total of a little over 20 acres. There seems to be some interest now from different parties to purchase. Need to figure out what a fair offer is and if it would be in our best interest to hold or to sell. Any help would be greatly appreciated.
Based on your location in Sec 6 of BLK50 T7S, the real value for what you should sell and actually get is around $55,000/acre. It’s actual full value is twice that, but you have to give them room to make a substantial profit otherwise there is no point in purchasing. Unfortunately, they (everyday mineral buyers) always offer half of the $55K if you are lucky. Your location has at least 4 productive benches and will eventually have a total of at least 24 wells per section. The real buyers like your operator will pay $30K once they get ready to commence drilling because they know what their future plan entails. If you do not need the money due to financial hardship, then do not sell at bargain basement prices. Your location is prime!!! I suspect they have not commenced drilling since most operators want 10,000 foot laterals so your operator really needs two full sections to drill most effectively.