My sister, brother and I share 26.666 acres in a 80 acre tract in Section 19; block 7 in Reeves county.
We have been been getting several letters from companies wanting to buy our mineral rights.
We have been offered $6,000 per acre up to $8,000 per acre.
Would any one with knowledge of this area give us advice on a fair offer and if drilling is being done close by. If drilling is done close by, what is the estimated yearly income from the well?
Thank you,
Sue Titus
Susan,
After checking the GIS Map I see several oil and gas wells in all directions from your minerals. 4 of the wells that I checked are producing from 3 different formations(Devonian, Wolfcamp and Montoya).To the N/W of your minerals well 33976 was drilled by Endeavor into the Wolfcamp formation in Abstract 1033. It is being operated now by Diamondback E & P. It is a very good oil and gas well.
Link to completion Report on well 33976:
http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method...
To the N/E is a gas well(32165) drilled by Parsley into the Devonian formation...Production Data Link on well 32165:
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab...
Next door to the South of Section 19 are 2 gas wells. Well 32256 drilled by XTO(Exxon) into the Devonian formation. Well 32231 drilled by XTO into the Montoya formation.
My personal opinion is to not sell these minerals. After looking at the possible future production from this area I would say these minerals are worth $30,000/$40,000 per acre for 100% of the minerals.
I haven't checked but there may be other producing formations in this area.
I AM NOT A PROFESSIONAL. THIS IS MY PERSONAL OPINION.
GIS Map of Reeves County Section 19/Block 7/A-39 and surrounding area:
Clint Liles
Clint,
Thank you so much for all of this information.
I will forward this e-mail to my brother and sister.
Do you think we should get a lawyer who deals with land sales or hold off to see if a company wants to drill in the very near future?
Thanks again
Sue Titus
Hello Clint,
I've received a fed exp envelope with paperwork offering me $100,000 for my 8.8867 land - Section 19; Block 7
This is $11,252.77 per acre.
My brother spoke to someone at the company but my sister and I did not.
Can my brother sell his share of the 26.66 acres and my sister & I keep leasing our 8.66 acres?
If a well is drilled and produces while we are leasing it could you give me an approximate dollar amount we might get monthly?
Thank you.
Sue Titus
Susan, if you each own an undivided interest in the mineral rights any of you could sell and it would have no quantifiable effect on the others, maybe just slightly less clout in future leasing for anyone who kept their interest.
Hello Susan,
I will agree with what Robert said. Each individual can sell or lease your minerals.
As far as what the monthly amount might be on a well is an impossible question to answer. Too many possibilities to consider such as what is to be the targeted formation, how long will the lateral of the well be or is it going to be a vertical or horizontal well? Some formations produce gas while other formations produce just oil or the well might produce oil and gas////Will the well be fracked or acidized? 
Too many possibilities to give an answer to your question.
Clint Liles
Thank you.
Susan Titus
Do you still think holding on the property is a good idea.
I've heard the oil business is starting to improve.
Thanks.
Susan Titus
Good morning Susan,
If they were my minerals and considering where they are located I would not sell.
Clint Liles
Im an old Pecos Boy Susan. the emphasis here is old .I wouldn't sell it at twice the price. The formula for finding the Royalty is (Your Acreage/total acreage in pool) X(30days production X Royalty % )X Price Oil Nymex. Yalls total interest could be as high as 4% to as low as 1% depending on the pool.I would AGREE THAT holding more of the acreage is better to negotiate the lease, dont let the stars of instant $$ dance through your head, the IRS and Bills will soon come to get their share.
Susan
We receive from 6 to 10 letters a week offering us an opportunity .Most stumble when I say that is not even what I got for the $ per acreage for a lease .Hold on to what you have ,in time it will pay off, I believe
Thank you.
I accepted your friend request.
Susan, I see where you've signed a number of leases over the past 30 years covering the SW/4 of the NE/4 and the SE/4 of the NW/4 of Section 19, most recently with Anadarko.
Over the past 12 months, Luxe Operating and Parsley Energy have taken a large number of leases in Section 19. Luxe sold their leases in September to Diamondback Energy (a fantastic operator).
Odds are either Diamondback or Parsley will drill a well in that section. Lease and sale prices in Reeves County have increased dramatically in the past year, and I would not sell for the amounts your described above. Those prices are more in line with what lease bonus prices are these days.
If you are wanting to sell, you may want to reach out to one of the forum sponsors to find out what they're seeing in that area. If you're not in a rush, your purchase prices will probably go up as you get closer to your lease expiration date.
I am not exactly sure what you meant but if you are saying she might get $30-$40k per acre, that seems out of line to me and will mislead her. Minerals don't sell for that much.
Neverybilly,
click on this link and read..............
http://fuelfix.com/blog/2016/08/08/oils-hottest-zip-codes-see-bids-soar-on-sm-deal/
Clint Liles
Thank you for the article. The Houston Chronicle has a similar article in today's paper on the front page. It's really
I plan to hold onto the mineral rights but the big offers to sell are pretty tempting,
Thanks.
Susan Titus
I just saw this post you made and again, you have mislead the lady. That sky-high number is what some oil company paid another oil company for their leasehold, not what they paid mineral rights owners.
