Mineral Rights Forum

America’s conversation place for mineral owners

Ward County, TX - Oil & Gas Discussion

Information

Ward County, TX - Oil & Gas Discussion

Oil & gas discussion group for those interested in Ward County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Members: 254
Latest Activity: 6 hours ago

Discussion Forum

SEND ME YOUR BLOCK/SECTION/SURVEY NAME AND I'LL SEND YOU A PICTURE OF WHERE YOUR PROPERTY IS!

Started by Linton Tomlin. Last reply by Linton Tomlin 10 hours ago. 134 Replies

I have a Ward County, Texas map on my wall, if you send me your block/section/survey, I'll take a picture and upload it here or send it to you at an e-mail address if you prefer.

Block 34, Section 74, need current lease amounts in area

Started by Linton Tomlin. Last reply by Rock Man Jan 4. 11 Replies

Happy New Year, Everyone.  My lease expired 12/28 on the above referenced parcel and I'm curious what the current going rates are for leases these days.  Sure would appreciate any and all information…Continue

Compressor Station

Started by Cliff Davis Jan 3. 0 Replies

Does anyone have information about what compensation you should ask for if a company wants to put a compressor station on your land ?

REPOST

Started by Leon Flores. Last reply by Leon Flores Nov 26, 2017. 8 Replies

I bought this property through Auction two years ago. Am not from Texas don't know anythingabout my property in Ward County, Texas. Last month I received a letter from this company,International…Continue

Comment Wall

Comment

You need to be a member of Ward County, TX - Oil & Gas Discussion to add comments!

Comment by Cliff Davis on Tuesday
Does anyone have information on a 10 year term lease for surface ?
Comment by John Anderson "Andy" Davis on January 7, 2018 at 1:44pm

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.

Comment by Charles Morgan wurst on January 3, 2018 at 6:47pm

Thanks for the info.  

Comment by John Armstrong on January 3, 2018 at 5:36pm

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.

Comment by Rock Man on January 3, 2018 at 3:01pm

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. 

.Block%2034%20Sections%205_6%20production.pdf

Comment by Charles Morgan wurst on January 3, 2018 at 2:34pm

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

Comment by Linda Silvertooth on December 17, 2017 at 11:33am

Got our 6th offer in just over a month to purchase our property in Sect 59, block 34 but this one had a different twist. KEW Drilling offered to buy a portion of the royalties from our current lease with Jagged Peak. Interestingly enough, Jagged Peak took over the lease from KEW 16 months ago.  They also offered to buy the land, min rights etc, but the offer is less than a couple others.  Does anyone have any advice about selling the royalty rights........my instinct tells me it's not a good idea....I would lose the potential for future profits. Any thoughts?

Comment by Charles Bryant on December 4, 2017 at 9:21am

Mr. Dennis,

Thank You for the information.  Were those rates for a 10 year term or permanent easement?  If a specified term: renewal price with CPI adjustment as well?  The Univ of Texas also requires removal at termination (not that that happen anytime soon).

Thanks Again,

Charles

Comment by Bob Dennis on December 4, 2017 at 8:02am
Mr. Bryant,
We granted an easement on our Ward County property to Medallion Delaware Express, LLC just last month at $180/rod after their initial offer of $120/rod. They were good to deal with and payment was quick.
Best regards,
Bob Dennis
Comment by Charles Bryant on December 3, 2017 at 11:11pm

Is anyone with surface rights negotiating with Medallion Delaware Express Pipeline for an easement in Ward County?  I am familiar with the University of Texas rates which are stated as minimums.  I was wondering what rates were being consummated. Thanks in Advance for your thoughts!    

 

Members (254)


Pro
 
 
 


© 2018   Created by Kenny DuBose.   Powered by

Badges  |  Report an Issue  |  Terms of Service