I am intersted in selling my mineral rights in a property that has several producing wells. The wells are located in Section 173, Block 34, Ward County. Any suggestions as to how I would secure best price?
Dorchester Minerals L.P. will be hard to beat. not many are seeking to drill BoneSpring Wells in Ward. i saw one new in Winkler. the hot part is the southern delaware. DMLP will snap up your mineral rights for shares. then sell the shares if you dont like the 10% div.
What’s the interest listed under for production purposes? Jenelle Mitchell?
Yes. This is the correct name.
John, whatever you do DO NOT take this advice and go with Dorchester.
Just curious, what’s the problem with them?
Nothing wrong with Dorchester, I guess I should’ve worded that differently it does seem malicious… I’ve never heard anybody saying anything negative about them but they like to do their deals in a manner that makes a lot of people uncomfortable. Trading equity for minerals, no direct payment, extremely long order of payments, etc…
For someone like me, I like it straight up. PSA & a mineral deed, then hand me my check. Not a fan of doing business that way.
Honestly you’ll probably receive a lot of attention through this post. If it were me, I would shop it around to everyone that reaches out to you and see what the offers are in the area. A lot of people dont like the idea of going through a broker, but in your situation it might be beneficial. Although they get a chunk off the top, theyre also going to be able to shop your minerals way more efficiently and get you the best possible price.
I would recommend a brokerage, but unfortunately the only one I know/trust working in Ward is no longer in business.
Judging by the heavy development that has already occurred, I doubt people are flocking to purchase this for anything other than a PDP cash flow deal based on current production. Would you agree?
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it has three bonespring formations on it and maybe one of thier WC ones has some sandstone in it. Saturn Oil & Gas of calagary has been drilling extended reach horizontals for 988k on ave for extended reach wells. so IF you can get a well drilled on it for UNDER 750k…why would you ever wish to sell it? i think its gonna change the entire drilling community once the majority of sandstone drills are completed with just a screen out of the heel.
I would say so, yes.
Is this acreage near Barstow?
Yes - within a mile or so of Barstow…
Be cautious as to asking questions like this. In this industry, being “near” something (town, unit. etc…) does not really mean anything. a 1/4 mile can be the difference in your minerals being worth 20k per acre and 2k. While it is not always this drastic of a difference, my point is that general location does not matter, two neighboring units can have very different values.
The owner already gave away the exact location. I have been in the mineral business for 40 years, and so I did not ask about values. I know the difference between a rich oil man and a poor oil man - a 40 acre lease.
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Interesting. A simple RRC Map search would’ve gotten you an answer much quicker.