Our Family have several pieces of land with royalties. The offer we received was 19,000 a mineral acre for Blk C2 Sec 30, Sec 28 and Sec 29. We have an interest of roughly 30 acres. If any one could help with this offer and let us know if it is a good deal. We have been looking to see if any new permits are being applied for to see if this is royalty we should keep.
Thanks in Advance.
I consider that pretty low for that part of Pecos County and especially considering that you already have income from producing horizontal wells. Chances are you can do much better if you intend to sell.
Hugh, it is hard to give you an informed opinion without knowing what your royalty rate is, as that will dictate the revenue, and thus what someone might pay. Sec 30 looks like it has been held since the 60s so assume it is 1/8th. The others are newer so likely 1/5th or 1/4th.
In general, for that part of Pecos:
If you are getting offered $19k per mineral acre leased at 1/8th, that is a great deal.
If you are getting offered $19k per mineral acre leased at 1/4th, that is not a great deal.
So the devil is, IMO, in the details.
There were a few wells permitted in Sec 30 in January, but nothing beside that. Good luck.
Thank you for the replies. We are now receiving multiple phone calls
what company was the first offer from and who did you end up going with. We have recieved our lease and bonus offer… it seems extremly low… almost a mockery. And many inconsistencies from the first phone call to the actual paper work recieved in the mail.