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New to this.   Getting lots and lots of letters from brokers / flippers and operators.   Offers for purchase vary considerably.   Anyone have a low / average / high price per NMA in this area? 

Thx

JC

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Replies to This Discussion

Hi, Jesse! 

As luck would have it, I had someone send me some information about Mineral Interest in the N/2 of Section 9 just the other day and I have a company looking at it.

Whatever you own there, it is probably worth A WHOLE LOT OF MONEY.  More than you want to discuss here in the open Forum. 

If you will click on my name where it appears in BLUE and send me an invitation to become A Friend on The Forum, I will be happy to discuss your questions with you more privately. 

I advise that you NOT sign anything or even verbally agree to anything until you know much more than you appear to at the moment. 

Hope this helps - 

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

Jesse,

Your minerals are in a very active area, and Cimarex Energy recently (this month) obtained two drilling permits for horizontal oil wells on your property. Cimarex is a great operator, and your purchase offers will likely increase in size and frequency in the coming months. In addition, you'll probably start to receive phone calls and private messages on this forum from folks wanting to buy your minerals. I'd just sit back and wait for the wells to be drilled. There is a reason all of these companies want to buy your minerals, and it isn't to lose money. Best of luck!

Thanks for the reply.   Just trying to figure out at what number it makes sense to sell and invest vs waiting on royalties and being subject to operator deciding when and how much to produce.   Any advice would be greatly appreciated.  The property has been in my family for generations.   Trying to make the best decision I can with good information and data from people like you that know way more than I do.

I'm guessing that some of the offers are at or greater than $20,000 per acre? To put that in perspective, it would take somewhere between 800,000 - 1,000,000 barrels of oil and associated gas production to yield that amount of money if your lease royalty is 25%. In the section to your east there are two wells that have produced about 475,000 barrels of oil in just more than 3 years. With natural production declines it will take those wells several years to hit the 750,000 mark but there is certainly potential for more wells in the future. Hopefully this helps give you some perspective as to what might be a good offer.

There are sections to the north, south, east and west of you that have over 10 wells/permits in them. Cimarex is one of the best operators in Reeves County, and it is to their advantage to produce as much oil as possible from your wells. I don't think that you'll be disappointed holding on to these.

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