My father has a few small mineral rights interests in:
H&TC BLK 34 SEC 6
H&TC BLK 34 SEC 6 N/4 N/4
H&TC BLK 34 SEC 5
I am his legal guardian and have been receiving offers in the mail for his interests. It’s not a whole lot of money, but he has numerous medical bills, so I may have to sell it for him one day. Are this mailed solicitations just vultures circling? Are any of the outfits better than others? My oil & gas knowledge is next to none. I appreciate any insight.
Morgan
I suggest holding on to your mineral rights and never sell them. There are many entities who will take advantage of uninformed mineral rights owners by offering seemingly good money now, only to reap large profits when they flip the lease to someone else.
In portions of Ward, Reeves, Pecos and Winker counties, Jagged Peak has leased nearly 70,000 acres in their Whiskey River, Big Tex and Chochise developments where there are 937, 232 and 243 target locations respectively (Locations based on 880’ spacing and current acreage of approximately 70,000 net acres). This activity might be used as a gauge for activity near these developments not under lease.
For 2018, Jagged Peak has about 24 holes planned to hold the Whiskey River Development. In each of these developments, the current target zones are: 3 Bone Springs, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B.
In short, if you have mineral rights near/in these areas, it may behoove you to hold on to them since Jagged Peak has some big and aggressive plans for these developments. They know, as well as other companies, something mineral rights owners typically do not know.
Charles,
I will try to help you a bit as to your question on your father’s mineral rights.
The area you have described has been a long producing shallow oil field area (since pre WWII) from the San Andres formation. Millions of BO produced and wells presently in their very late and marginal stages of production.
Over the past year, a few operators (including one - Four Corners) have been drilling deeper vertical wells below the San Andres and making some O&G completions. Nothing great (yet) but definitely opening up a potential new play below the old tapped out shallow production.
This new activity is probably the reason that the royalty buyers are now contacting you. I would say from my own experience (I get one unsolicited offer to purchase my S Tx minerals per week), these are all legitimate companies with $$$ to buy minerals. They will be making offers based on the PRESENT production and some multiple of that production (e.g. if you are getting an average of $100 per month from your royalty interest, they will offer 30 to 50 months of that rate - or $3000 to $5000). Many people will jump on this to get some money. The buyers are looking to pick up interests from individuals who are not up on what is happening as to new activity and/or are tired of only getting mini checks and/or who want a bigger one time pay day.
In any case, awareness is key. I would suggest that you get into the Tx RRC site and try to stay up on activity in your area. I will admit it is not the easiest website to navigate but it is “free” .
The attachment below if from DrillingInfo.com (a pay site) and shows sections 5 & 6 in Block 34. As you can see, a ton of drilling (all shallow San Andres) over these two square mile sections.
Good luck on this issue.
Charles,
I’d like to reinforce John’s comment. My Uncle was a petroleum geologist for 50+ years, and along the way picked up small interests, often as partial payment for doing work for oil companies. Before he died, he told me: Never sell your interests unless you absolutely have to. If someone wants to buy them, it’s because they know something you don’t."
I inherited a whole bunch of old wells, dating back to the 1930’s, in the O’Brien field. They don’t pay anywhere near what they did a few years ago, but they keep on dribbling. And the recent requests I’ve also gotten to sell tells me that Rock Man is right on.
Does anyone have information on a 10 year term lease for surface ?
Regarding my Sept 23, 2017 question about my Blk 34, Sec 63 property not having any activity while the 2 year lease extension’s time was about to run out: I spoke to Jagged Peak’s land office which told me a well was begun early Jan, 2018 and 3 more scheduled to start drilling Feb through July. Clint Liles was spot on - patience! I thought folks would like some follow up info and I wish others would do the same more often.
Hey, Susan, congratulations!! I like Jagged Peak a lot (and good ol’ Clint Liles!). And I couldn’t agree more with you about folks following up on info. Sounds like you’re off to a good start and in good hands. Linton
Susan…when you say you spoke to JPE land office, do you mean the guys in Denver? If not and it is someone local, I would like to talk to them too. Hard to get anyone in Denver to reply to questions.
Thank you Elizabeth. I sent you a friend request.
For Susan Van Siclen…
Latest GIS Map of Ward County Block 34/Section 63:
CLICK ON MAP TO ENLARGE
Clint Liles
Randy Duggan, I have all of the numbers for the land man, lease manager, and division order analyst for Jagged Peak if you need them.
Susan, I am also in section 63 block 34 and spoke with Jagged Peaks land man for that specific section about 2 weeks ago. I was given all the info on 3 wells that spud, 2 in November and one in December. They are set to complete the end of March. If you look at the map that Clint Liles provided, you can see the 3 that run through our section and I was told that a 4th well is in the works as well.
Elizabeth, We were given differing time tables but in either case good news! I like yours better.
Hi, Rainey. Welcome. I’ll send you a friend request. I’m a mineral owner in Ward also. Linton
Hello everyone, My name is Rainey. I am new at this and would like some friends. I have land in Ward County. So I have been listening in on the blogs here to learn a few things.
Halcón Resources Announces Acquisition of 22,617 Net Acres in Ward County, Texas at an Average Price of $14,674/acre and Provides an Update on Recent Operated Well Results NYSE:HK
https://globenewswire.com/news-release/2018/02/06/1333954/0/en/Halcón-Resources-Announces-Acquisition-of-22-617-Net-Acres-in-Ward-County-Texas-at-an-Average-Price-of-14-674-acre-and-Provides-an-Update-on-Recent-Operated-Well-Results.html
Halcón Resources Announces Acquisition of 22,617 Net Acres in Ward County, Texas at an Average Price of $14,674/acre and Provides an Update on Recent Operated Well Results NYSE:HK
http://https://globenewswire.com/news-release/2018/02/06/1333954/0/…
Hello again, I have been out of commission for a few months but wanted to respond with possible useful information
Traveling to look at your land in Ward County is a waste of assets as there is only miles of brush, You will not find your land as nothing is marked or surveyed out other than what is on the county map.
Ten years ago I wanted to know if my lease was being drilled by Cimarex so I hired the manager of the local water district who knows the area to investigate and paid him $100 for the job, worth every dollar.
In August 2017 we leased our MR to Carrizo Oil & Gas company, 3 years, 25% royalty for $15,000 per net Mineral Acre. Sec 1 Blk 1
Offers to purchase mineral Rights come in all the time and many are signed by the same person on several different company letterhead.
They are sending out farming letters to see who might respond to their offers which vary by company. I track the companies for reference.
Can someone point me to a Land Surveyer for my property in Ward County?
I am owned the 20.4 acres, more or less, being Lots 47, 48, 50 and 51 of the NW/2 of Section 11, Block 33 H&TC Survey, Ward County, Texas . How much I can sell per acres or Now much I can lease for Oil and Gas Per acre.
Thanks,
Randy Cheng