I own 80 acres, surface and mineral, south of Pecos: West half (W/2) of northwest quarter (NW/4) of Section 26, Block 50, Township 7, Texas & Pacific Railway Company Survey in Reeves County. I live in North Carolina and am pretty much ignorant of the oil industry in general and exploration in Reeves County in particular. I was leased to OXY from 2013-2015. I am currently leased from 9/2015 to 9/2018 to Concho with a 1/4 royalty. I usually receive four or five offers per year to purchase mineral rights or royalties. But in 2016 we received 30 offers, and in only the first two months of 2017 to date we’ve received 9 offers. Some of these people can get rather insistent, but I recognize this is the name of the game. Certainly, the number of offers has spiked in 2016 and so far in 2017. I do not need money immediately from sale of mineral rights or my royalty interest--I can afford to wait if there is a possibility in the intermediate future of oil income. Can anyone tell me what activity there is in my area? Any opinion on whether to sell and take the $$ or to hold what I have? Just trying to make an informed decision in a situation where the landmen seem to have all the info and know all the rules. Many thanks!
Marshall,
Your minerals are in a very active area. Below is a map showing your section, and the surrounding activity. The horizontal lines connected to green circles are horizontal oil wells, and horizontal lines connected to hollow circles are permitted wells. I've also included a leasehold map that shows some of the leasing activity that has occurred in your section. I'd be inclined to hold on to the minerals given the area, and Concho is a great operator. If you are wanting to sell, there are forum sponsors that could probably share what values they're seeing in that area, but I'd personally hold on.
http://marketplace.mineralrightsforum.com/ad-category/minerals-management-consultants/
Best of luck!
Amen to Wolcamp Shale! Never sell unless you absolutely need the money. I would guess that your interest will be producing in the short rather than the long term, and Concho is an active, competent operator. You are towards the southeastern portion of the "Wolfbone" play, one of the most active areas in the Delaware sub basing of the Pemian Basin.
Besides, if you sell, you'll have no reason to be a part of this forum!