Anyone has sold or on verge of selling part or all minerals in this area? Thoughts on going price for HBP per net acre minerals and what company has been successful in acquiring same? We have between 45 and 65 acres. If you prefer you can send private email.
Eclipse Royalties tried to buy my royalties for a figure that seemed to be extremely high in Block 33 of the H&TC Survey. I could have had a nice nest egg if I took the bait. But, I think there are bigger and better things down the road if I hold on and not let greed cloud my thoughts.
When someone is offering me six figures for nearly 14 acres for my portion of the lease that I am involved with, it tells me they know more than I do and will turn around and sell at a hefty price at that.
A friend of mine who works for Occidental Oil told me to hold on to my mineral rights since he is very familiar with the area. There is much more than what oil companies / operators are leading many mineral rights owners to believe. Over six billion dollars of mineral rights in the Permian Basin have been purchased by oil companies in the last year or two. And that figure is only climbing. This should tell us all something.
As you can see in the map attached, there is quite a bit of activity in this area of Ward County. The 1H well in the Northwest corner of the Section 147 is a horizontal development well which was drilled in June 2012. The 2H well to the east was completed two years later. Both of these wells are operated by Cimarex Energy. The 2WA well in the middle of Section 147 is operated by Callon Petroleum which acquired this well from Ameredev in February 2017.
As Joe said, these minerals are quite valuable and there would be significant interest if you were interesting in testing the market. There are a number of good reasons to decide to sell mineral rights however, which include re-investing the profits into real estate or other mineral rights in order to diversify, retirement or other appreciable assets. While oil and gas mineral rights are a hot commodity and quite valuable (depending on location and other key factors), the argument can be made that there are less risky investment opportunities available.188-WardCounty14734HTC.JPG (268 KB)
Our property is in SEC 1. Over the past 7 plus months we have had over 30 offers to lease or purchase our MR’S. Offers started at $1500 to $2500 per nma an escalated to $10,000 per nma where most land men are offering. I can say that $10,000 is a low offer!
Offers to purchase have been as high as $22,000 pnma in the mid 6 figure range or slightly lower.
Be cautious of landmen an research the companies represented as many of them are flippers. If you are a good negotiator you can raise value if you can read the landsman interest. I have found it best to deal straight forward, lay it on the line and be honest. If you are not a good negotiator get help or you will leave thousands of $$$$ on the table. You also have to know when you have reached the top price.
We decided to lease rather than sell after months of decisions.
It is a “PLAY”.
We now have offers in the 7 figure area, which translates close to the $22K per acre valuation. A few of the companies are current area operators as well as a few flippers. We are waiting on an engineers evaluation. We never sell total interest in a well, when we do is would be 1/3 to 1/2. This way we keep skin in the game for the future. As many of you know, the tax situation at the WH pose another issue to think about. We could go on about the political people playing games. Lets just hope that Washington can get some sort of a retroactive tax deal.
Anyone see leases rates around in the $5K range in the south part of this section?
Good morning everyone,
Can members in the know tell me how companies evaluate the value of M R when they are trying to purchase
your minerals. We are having offers in the $350,000 range ($21,000 pnma) for our individual interest; my gut feeling is this is very low, we have had this land and minerals for over a 100 years in the family.
How much oil is projected for the Delaware Basin and projections of how long the field will produce. I know these are WAGS.
Trying to educate myself.