Any Activity in SEC 35-36, BLK 58 T1S?


#1

Hello Everyone! First time post here…I’m a newbie. I got a mail offer for $31,225 per NMA from Anthem Oil and Gas recently for mineral rights in SEC 35-36, BLK 58 T1S in the Ford Geraldine Oil Field. Is anyone aware of any activity in this area? No other offers recently besides the one from Anthem Oil. Royalty checks have been few and far between, which begs the question WHY would there be any interest to buy my rights. I have contacted Caple Royalty, Dallas, TX and they are currently researching my interests at this point and time. Anyone with any advice or thoughts on my situation? Your comments are most Welcome!

P.S. I inherited these rights, so my knowledge is limited, to say the least, about them.


#2

ConocoPhillips has filed 3 permits for LoneStar State 1H, 2H & 3H wells. Well pad in Section 24, Blk 58, Twn 1. But each producing wellbore will run through Sections 25 and 36, Blk 58, Twn 1. Permits filed in October 2017 but not yet spud. In May 2017 Conoco filed 4 permits for Yellowfin Tuna WC 470 1H; 2H; 3H; and 4H wells. Well pads in Section 47, Blk 58, Twn 1 but the producing wellbores run through Sections 35 and 38, Blk 58, Twn 1. These wells have been drilled. Not sure if the wells have been fracked.


#3

Thanks for the info, TennisDaze. So am I correct in thinking that these are horizontal drillings and that is why Anthem is making an offer? Any thoughts on whether $31,225 per NMA is a fair value offer? I’m looking forward to hear back from Caple Royalty as to their recommendations.


#4

UPDATE The offer from Anthem was assuming a 25% royalty interest and I have 12.5% royalty, so the offer is $15612 per NMA for my 3.75 acres. Again my rights are in Sec 36, Block 58 T1S, Abstract 2608 in the Ford Geraldine Oil Field. Is this a fair offer? I am leaning towards selling my rights, but am willing to listen to any advice anyone may have. Thanks much!


#5

I received an offer for around 28k per nma for the same 12.5%. But, I’ve heard it said quite often that you never sell unless you really need the money. I don’t think it’s an understatement to say land in this county is one of the hottest assets on the planet.


#6

Thanks John, Happy July 4th to you! Are your rights close to mine? Also, if I’m understanding correctly, your offer is almost twice the amount I was offered, $28,000 vs $15612 NMA at 12.5%. If we are close geographically, then I need to shop around. I have talked to Caple Royalty, Dallas, TX and a landman out of Richardson, and both said Anthem’s offer is strong. As Tennis Daze said, there are some new wells in my vicinity, but how long will it take for the royalty checks to start coming in, I wonder? The area I’m in has been virtually non-producing for years, but it does appear that’s all about to change.


#7

Paul, don’t count on getting that 28k per acre leased on an 1/8. That can’t be right, there has to be some wording in the offer. That would mean they would be paying 56k per nma leases at 1/4, not going to happen. Your offer is strong from what I have seen.


#8

Cole, my offer was $31,225 per NMA at 25%, but my interest is 12.5%, hence the $15612 NMA I mentioned. John Clark said he was offered $28k per NMA, responding to me.


#9

Yes I know. He stated that he was getting 28k per acre for his 1/8 royalty. I was just stating that can’t be right, so don’t hold out expecting that kind of price. You’ll be waiting a long time.


#10

Gotcha. I figured that out after you sent your reply. Thanks


#11

Paul,

This is a great area with multiple target zones. If you are in pay on the Yellowfin Tuna Wells in section 35 you currently have 4 wells that have been spud in addition to the three permits in section 36. If you’re in pay you should be receiving cash flows from the 4 Yellowfin wells when they come online & interst payments are dispursed (which should be relatively soon). There is also plenty of highly economic drilling locations left in the sections you have interest in that will be drilled in the future. I would suggest you hold on to what you have since you have near term payments & running room for future development. If you have to sell, absolutly shop around and get the highest price. I would suggest contacting different mineral companies to get offers, I guarantee they will be interested in what you have.


#12

Thanks Spivey! Tennis Daze had mentioned the Yellowfin Tuna wells earlier, nice to have you confirm. Excellent info and exactly what I was looking for, coming into this forum, as I live in Columbus, Ohio! This is probably an unanswerable question, but would you have any idea what my monthly royalty payments would amount to, or is there a formula which could be used to arrive at a $$ figure? Perhaps based on my 3.75 NMA? Just asking…if anybody wants to weigh in, I’m all ears.


#13

I do not know how your interest are spread between the two sections you’re in. However if you know your decimal interest in the 1300 acre Yellowfin drilling unit (Attached) it would be easy to give a rough estimate.