Ok I don’t think I own the mineral rights. I have a buyer offering $300 per acre. Is this a fair offer or should it be closer to $800 per acre. Someone please let me know. thanks
Correct, you don’t own the minerals. Only the surface owner would get paid for damages when a pipeline crosses a certain tract. I’ve never been offered damages on a per acre basis. Maybe others have.
I get damage payments based on how many rods and the diameter of those rods and the link I sent you shows the calculation which is industry standard. If you want to find out the standard here, ask the offeror how many rods and what the diameter and use the link to calculate, then compare to your current offer of $11,100. You’ll have the answer you’re looking for.
Jesse-
$300/acre to sell minerals is extremely low. In Reeves County, people commonly get $7500/acre + to sell minerals.
Wade, he’s trying to get a number on his surface acres. I guess they don’t have a surface rights forum website. Anyways, thanks for the update on what minerals are going for in Culberson County. I bought an E. Culberson map and it looks like all the good stuff is owned by the 3 C’s (Conoco, Cimarex, Cog)…
Sec 3 block 113
This is a very good area in my opinion.
Capitan has just drilled and completed two 5000’ laterals on the east edge of Section 3 Block 113. IP rates of 4.9 and 5.1 MMCF per day with very high liquid yields (in the 300-400 BC per MMCF range). Plus There is a BHP horizontal just south of Section 3 that has produced 1.3 BCF and 206 MBO since Dec 2013 and is still producing 800 MCF & 160 BC per day as of Feb 2016 - probably a 4 BCF & 600 MBO EUR well.
What you have been offered is way low in my opinion.
I have an interest in the El Capitan well. Sorry to ask a lame question, but what does the following mean?
IP rates of 4.9 and 5.1 MMCF per day with very high liquid yields (in the 300-400 BC per MMCF range)
I just got a lease offer with the following terms:
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$1,000 per net acre bonus consideration
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$1.00 per acre prepaid delay rentals for the 2nd and 3rd year
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25% royalty
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Three year term
What do ya’ll think?
I have two tracts in Culberson…30 miles south of the NM border and about 10 miles west of the Reeves County line. One of these days the nat gas price is going to be better and maybe this acreage will be relevant.
Maybe…
IP = initial potential rate / test rate on completion
4.9 to 5.1 MMCF = 4900 to 5100 MCF per day of gas / assume sales price at wellhead of whatever the going rate is for gas (priced on the MCF)
High liquid yields means very rich gas with lots of condensate (oil) and NGL’s (natural gas liquids) associated with gas stream
The 300-400 BC = that volume of hydrocarbon liquids per million cubic feet of gas produced
Thank you very much for your expertise.
Awesome. Thanks for the information Rock Man!
Robert - where in county are your minerals located? Geology varies significantly across the county - and in turn, so does the O&G prospectivity
Those Capitan wells started producing in February 2016
Robert,
I agree with Rockman…’’’’‘What you have been offered is way low in my opinion’’’’’
$2,500 to $3,000 per acre sounds more reasonable
Clint Liles
Rock Man,
Do you know if State Mike 3 #1H has 2 wells or just 1? Is that the well you mentioned located in the Eastern 1/2 of Sec. 3, Blk 113?
As always, thanks for your help.
R
Capitan has two wells drilled from the same pad
State Mike 3 1H (42-109-32897) - western lateral
State Mattie 2 1H (42-109-32894) - eastern lateral
Noticing ‘Capitan’ mentioned several posts below reminded me of seeing this recently…
Updated June 1, 2016, “Top 12 I.P. wells in the Permian Basin”:
[http://www.ugcenter.com/updated-top-12-ip-wells-permian-basin-598646](http://www.ugcenter.com/updated-top-12-ip-wells-permian-basin-598646)
(Normally I post on the Reeves Co. site.) Later – Buzz
Although most of you probably already do this, everyone in this group should also join the Reeves County group. It is the most active group on MRF and has the best information on what is going on in the area, in my opinion.
Thanks Rock Man. Appreciate the info.
So when you consider these Culberson/Reeves gas wells that produce oil as well, is it true that the gas and the oil all flow out together into a line, and then it is all separated out later?