Got family that is has some minerals in Borden and Howard right close to the county line. This one here actually sits on the county line itself. Section 24, Block 33, T3N is what the offer letter says.
Offer is for roughly $18,000 per acre they said. We have no idea if this is fair or not. Was hoping someone on here might know.
Did they just find out from the offer that they owned the mineral rights or have they always known??
Always known they had something, just never considered selling until now.
Has it been drilled on???
If I am looking at the Texas Railroad Commission Map correctly…that block is covered with oil wells. If they have not been getting any royalties, there could be funds in suspense. They need to hire an oil and gas attorney before they do anything!!!
Think a company called Surge might be about to drill it, but dont think the land has ever had a well. Not one that panned out at least.
Look at the Texas Railroad Commission public map. Go to the top and scroll down to Howard County. Zoom in 2 clicks and then pan over to Block 33 and find section 24. I may be wrong…as I am fairly new to this too. This happened to me and my sister 3 years ago. Company contacted us wanting us to sell…they told us nothing would probably ever be drilled on…thankfully a friend in the oil business looked our land up and there were 9 producing oil wells on it. Also, called the company that had the wells and there was a lot of money in a “suspense” account under my uncle’s name (we inherited from him). Oil and Gas Attorney was very reasonably priced and confirmed that we should NOT sell. This is all I can tell you.
We have leases in Sections 20 and 29, operated by Surge. Production has been good, and Surge has regularly sent royalty payments. I suggest that you hold your mineral rights.
Unfortunately theyre not mine to hold. I will suggest holding for now but they are more interested in selling at this point. Just wanted to see if this was a good offer or if they could get more.
As far as I could tell, the only active producers in Sec 24 are horizontal wells. Operated by Surge. There are a bunch of old verticals drilled here that seem to be inactive.
Section 24 is divided into two Surge Units, Williams A&B Unit 24-13s, here is what they look like and the active wells.
If they aren’t getting checks from Surge you’d think that means they are in suspense. If you look at the tax rolls for those wells there are a bunch of folks who have “Unknown Address” which means Surge doesn’t know how to locate them and their $ is getting held. Call land department at Surge in that case.
As far as $18000 an acre goes. Depends if they mean per mineral acre or a royalty acre. And if they mean mineral acre, depends on their royalty rate. Can’t really make any judgments without that info.
Although I would say $18000 per royalty acre is somebody paying too much. If its 18000 per mineral acre, and its a 25% lease, well then it could probably go for 20+% higher.
Honestly, so much of this depends on how many acres it is. If its a handful, and your relatives want to sell, then whatever, probably better to just sell it and be done. Counteroffer higher and settle in the middle.
Good luck.
That’s a fair offer but if you are leasing to Surge make sure all your ducks are in a row. And check them often.
