I have recently received an offer to purchase my mineral rights in Section 27, Block 48, Pecos County, that I am currently leasing. I have been offered $20,000 per mineral acre. I am reaching out to all of you to ask, first, if that is a fair price and, second, is selling the acreage, at this time, a good decision or should I hold on to it? I appreciate any and all assistance with this decision. Thank you.
Pat,
who is making that offer? Diamondback has 4 permitted wells in your section.
If I get a cold call for buying my acreage, usually they are after my royalties and there are pending wells. They are pretty sure they are going to make a profit off of me and I would rather make that profit instead. Since you have four permitted wells, that probably means the offer is low.
The company who has given me the offer to purchase letter has been in contact with me over the last year. I do not want to hold on to the mineral rights and then have something happen where the acreage is not worth anything and then I lose, completely. I realize there are no guarantees with anything, but this company has increased there offer from their original offer to purchase.
As I am still new on this Forum, I am not certain how much information should be put in these posts but since you mentioned Diamondback, they are the ones who are leasing my mineral rights. It is another company who has sent me the offer to buy letter.
BTW, is Diamondback paying royalties? I have never received any royalty.
Thanks, Pat
Here is what Sec 26 and 27 look like. The two northern wells are online since late 2018. The next two wells south from there have been drilled and fracked, no production shown yet. The two southernmost wells have started drilling.
They (Diamondback) have divided Sec 26 and 27 into 2 units. The northern half is called State Chapman, the southern half is State Cliffhanger. I don’t know where you own in Sec 27. If its in the northern part you should be getting royalties from Diamondback from those Chapman Wolfcamp wells. If that is the case, call them and ask. If its in the southern part then you will not get royalties until the Cliffhanger wells come online. I’ll assume you are in the South and will get division orders and royalties before the end of the year.
In terms of selling, if your lease is 25% royalty then $20k/nma is not quite high enough IMO. Should be closer to $25k-$28k/nma with 3 wells per 640 acre already “in hand”.
Good luck.
Pat we own acreage in Block 48 section 28. Recently we received a $29,000 per acre offer. If I were you I’d wait for a better offer or hang on to it as we did.
We own rights in 2 sections of Block 8 in Pecos County & have also received offers of $20,000/acre. Curious if that seems in line with other current offers. We have chosen to sit tight for now, but would like to hear what others are being offered. Thanks!
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