I own UD 1/6 interest in UD 1/4 interest. Per the offer I received it lists 480 gross acres x 1/24 fractional interests = 20.000000 net minerals. I am very new to this and just learning the ropes. Any help you can give me is appreciated.
Gene Finley said:
Nancy: do you own all the minerals of the 480 acres? It is difficult to figure if your offer of $375 is OK or low or high without knowing location. Several months ago, we agreed to and accepted $425 to $450 per mineral acre with 22.5% Royalty and three year lease with option to renew for two years. There are report of really good wells west of Brownfield. "Street" talk is that there will be quite of bit of new drilling as soon as rigs become available.
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
In my opinion, the most important part of the offer is the royalty interest amount. 22.5% is just about the top amount that I have heard of in the Terry Co. area. As I am sure you are aware, the "royalty" interest owner does not participate in the expenses of drilling or production and is paid from the gross sales proceeds of the oil/gas (if any). Long term, the royalty payments could be very financially rewarding. I receive small royalty payments that have been going on for 40+ years. Also, you need to know that there is a very active market for royalty interests - I get numerous letters from royalty buyers. Of course, I have no interest in selling.
Again, without knowing location of your property, it is hard for me to say what is the going least rate. Is there anyone you can contact who can help you with the location?
What are the other mineral interest owners doing? Also, do you own any of the surface estate (land)?
Whatever you decide to do, I would strongly advise having an attorney (who knows oil/gas stuff) look over the lease agreement before you sign it.
Nancy Mickey said:
I own UD 1/6 interest in UD 1/4 interest. Per the offer I received it lists 480 gross acres x 1/24 fractional interests = 20.000000 net minerals. I am very new to this and just learning the ropes. Any help you can give me is appreciated.
Gene Finley said:
Nancy: do you own all the minerals of the 480 acres? It is difficult to figure if your offer of $375 is OK or low or high without knowing location. Several months ago, we agreed to and accepted $425 to $450 per mineral acre with 22.5% Royalty and three year lease with option to renew for two years. There are report of really good wells west of Brownfield. "Street" talk is that there will be quite of bit of new drilling as soon as rigs become available.
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
Nancy,
We had an offer about 2 - 3 weeks ago that was from a previous offer of about 6 months ago for $250 an acre (up from $200). We had told them back when the original offer was made that it was too low. The person making the offer agreed that it was and said he would get back to us later when there was more of an interest.
Does anyone know if any drilling has actually started in this area?
I was given a new offer of $400/acre and 22.5% royalty. They are going to mail the lease offer and i will check with an oil and gas atty before signing anything. Thanks for all the feedback.
Nancy Mickey
Nancy Heath said:
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
Nancy,
We had an offer about 2 - 3 weeks ago that was from a previous offer of about 6 months ago for $250 an acre (up from $200). We had told them back when the original offer was made that it was too low. The person making the offer agreed that it was and said he would get back to us later when there was more of an interest.
Does anyone know if any drilling has actually started in this area?
I was given a new offer of $400/acre and 22.5% royalty. They are going to mail the lease offer and i will check with an oil and gas atty before signing anything. Thanks for all the feedback.
Nancy Mickey
Nancy Heath said:
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
Nancy,
We had an offer about 2 - 3 weeks ago that was from a previous offer of about 6 months ago for $250 an acre (up from $200). We had told them back when the original offer was made that it was too low. The person making the offer agreed that it was and said he would get back to us later when there was more of an interest.
Does anyone know if any drilling has actually started in this area?
I agree. My family was offered 22.5% and $300 per acre and we ended up with 25% and $400 per acre on 160 acres. It took a little bit longer but was worth the wait,
Kool Kotton said:
I really believe you can get 25% if you hold out!
Nancy Mickey said:
I was given a new offer of $400/acre and 22.5% royalty. They are going to mail the lease offer and i will check with an oil and gas atty before signing anything. Thanks for all the feedback.
Nancy Mickey
Nancy Heath said:
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
Nancy,
We had an offer about 2 - 3 weeks ago that was from a previous offer of about 6 months ago for $250 an acre (up from $200). We had told them back when the original offer was made that it was too low. The person making the offer agreed that it was and said he would get back to us later when there was more of an interest.
Does anyone know if any drilling has actually started in this area?
We understand 2 wells are being drilled west of Brownfield by Smith Oil. Fracking was to start late last week but we have not heard if it was successful.
We got $500 and 25% last week after months of lower offers.
Jack
Craig said:
I agree. My family was offered 22.5% and $300 per acre and we ended up with 25% and $400 per acre on 160 acres. It took a little bit longer but was worth the wait,
Kool Kotton said:
I really believe you can get 25% if you hold out!
Nancy Mickey said:
I was given a new offer of $400/acre and 22.5% royalty. They are going to mail the lease offer and i will check with an oil and gas atty before signing anything. Thanks for all the feedback.
Nancy Mickey
Nancy Heath said:
Nancy Mickey said:
I have 480 acres in NW quarter and South half of Section 55. I have no idea where this is in Terry County. Has anyone received any lease offers here? My last offer was $375/acre and 22.5% royalty for 3 years.
Nancy,
We had an offer about 2 - 3 weeks ago that was from a previous offer of about 6 months ago for $250 an acre (up from $200). We had told them back when the original offer was made that it was too low. The person making the offer agreed that it was and said he would get back to us later when there was more of an interest.
Does anyone know if any drilling has actually started in this area?
Hello, I have acreage in Hockley County just south of Woolfforth on 82. We’ve been offered $250/20%, and having read through these postings, I’m wondering if I should wait. The landman says they are only going to honor their current offers, no negotiating. Since I’ve spent the last few days reviewing this forum, I’m now more informed, perhaps to no avail. Any thoughts?? Many thanks. Susan
I have been told that these are the "little guys" who are speculating that prices will increase and sell to the big drilling companies. I don't know what to think either, but from what I have seen on these boards more is offered as time goes by. I don't think they are doing much drilling in this area yet. We need to make a trip that way and see what is happening. I am interested in other's comments.
Nancy - these are quite interesting articles. Many thanks for taking time to share. I am entirely new to all of this, but I find it more interesting than I thought I would. They are preparing my lease, but I’m still not sure … the offer has felt hinky from the beginning. Have you identified a good attorney yet?
Bill McGowen in Brownfield did our agreement for $500 and 25% on land just west of Brownfield.
Stryker Travis said:
Nancy - these are quite interesting articles. Many thanks for taking time to share. I am entirely new to all of this, but I find it more interesting than I thought I would. They are preparing my lease, but I'm still not sure ... the offer has felt hinky from the beginning. Have you identified a good attorney yet?
Ah - I interpreted your post to mean that he charged you that…my brain is back on track!! Thanks! Forgive me - I’m VERY new to all of this. Many thanks.