Both my sister and I received an identical offer from Christian at Patch Energy for an interest my deceased father apparently has I have zero idea if this offer is fair or close to fair and would appreciate any thoughts The property is described as: Section 56,Block Y, T.C. RR Co. Survey, Upton County, Tx
Thanks, Rick
Rick,
You would need to let everyone know the what they offered in order for someone to help.
So the offer was 5793 to each of us do 11586 total Chistian said my dad had a 1/32th interest One thing I was unsure is if he meant 1/32 for me + 1/32 for my sister or just a total of 1/32 . I would have to get a clarification on that to be sure
Hey Rick, If you know nothing about the interest, there really isn’t any way to ascertain what you and your sister should be entitled to. Someone would need to check CAD records to see what net royalty interest decimal(s) is allocated to your father’s estate, if the interest is still held by the estate, and then cross reference the decimal(s) with the vertical leasehold acreage in order to figure out how much net royalty acres are allocated. This is needed in order to determine how much per net royalty acre they offered. No one will be able to tell you if this is a fair offer without knowing the price per net royalty acre offered. Your father’s name would be what is needed in order to figure that.
Title will most likely need to be updated if the interest is still held by the estate, but I am sure that they are more than willing to facilitate that if you divest to them.
I can tell you that they almost assuredly did not offer market value, unless each of you owns 1/5 of an acre or so. I suspect that is not the case though because most acquisition companies will not bother with small interests due to the costs associated with acquisitions.
Below is what the Railroad Commission’s map currently shows going on in the section you described that is highlighted in blue.
If I counted right TRP Operating LLC just got permits approved (the most recent on 5/5/23) to drill 12 horizontal wells. Several are so close together you can’t see the individual wells unless you enlarge the map.
Each drill site is supposed to be at the south end of the adjoining section to the south but the horizontal leg of each well is projected to extend through that section and on to the north boundary of Sec. 56.
Each of those wells is described as having stacked laterals and they are being drilled as an allocation wells. Whether the mineral interest you own will be included in one, or more, of those wells may depend exactly where your interest is located in Sec. 56, or whether you own an undivided interest in the whole section.
I’m assuming you are currently under lease to TRP or someone they are working with. In any case, I wouldn’t consider doing anything regarding the purchase offer you received until you learn as much as you can about your specific interest and what is happening there. If you decide you are interested in selling, contacting TRP to find out if they would like to buy you interest seems logical to consider since they are in the best position to know what will be happening there.
Thank you Hessy Very helpful information
Dusty1 Thank you for spending your time researching this Extremely helpful -Rick
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