How do you know if the offer is a good one.
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It depends upon what you mean by a “good one”. Is it for leasing, or purchase? Does it match other offers nearby for the same reservoir(s)? Is it by an operator or another group trying to get in on a deal? Or is it from a buyer? What are the terms? What are the clauses that go with the offer? Etc…
The question is too vague at the moment to truly answer. In most negotiations initial offers are often starting on the low end to see who will bite.
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Don’t know about other offers in the same area. Its in Dawson county block 34 T4N. offering $10,000 an acre to purchase.
There appears to be oil being produced in every section in Blk 34 T4N. Is it possible your minerals have suspended funds which have accrued, meaning you may have a large amount of money tied to the minerals which has not been claimed? Do you know if your minerals which now only receive royalties from vertical wells have been included in newly permitted horizontal wells? Go to the RRC’s GIS Map Viewer and look for your minerals and the producing and permitted wells. If you want to share the section number in Blk 34 T4N, I will generate a link which will open up the Map Viewer on your section and/or upload an image of it.
There are quite a few new permits for horizontal wells in 34 4N, so I suspect your abstracts may be involved. If you want to share your abstract and section, can pin it down a bit more. Buyers frequently want to scoop up acreage before the bit.
How is activity in BLK36 T4N ? We have land in T4N and T5N …
It is more helpful to you and the forum if you give the abstract and section as well as the Block. Blocks are rather large, so the answer would be too generic. Glad to answer if you pin it down a bit. The generic answer is “busy” with permits, more in 4N than 5N but location matters.
Thanks for the response, the tracts are NE/4 Of Section 6 Block36, T-4-N Survey in Dawson County Texas and SW/4 Of Section 5,Block 36,T-4-N Survey
NE/4 Of Section 6 Block 36, T-4-N. No permit at this time, but there is a horizontal permit just to the NW Moore CSL A-409 Block 272. Also a permit in Section 4 to the East of you.
SW/4 Of Section 5,Block 36,T-4-N Ditto. There has been leasing in both of those sections in the last 24 months.
Thanks for the info. We have been contacted by several broker types recently if we were interested in selling our mineral interests ,. just wondering if there was new activity in the area?
If you are getting offers, especially multiple offers, that is usually an indication of pending activity. Buyers want to get ahead of the bit. Since leasing is already started in the sections, another indicator. If it were me, I would get leased and sit back and wait for drilling. Suggest that you invest in a good attorney to help with any lease terms as the draft lease from the operator will not be in your favor and needs significant edits.
My is in section 2
Block 34 4N sec 2 has three permitted horizontal wells by PBEX-MCM Operating LLC . Target is the Sprayberry. That is why you are getting offers. I suspect you would make more in royalties than in the sales offer if you are not sensitive to time pressure. Buyers intend to make a profit.
Thanks for the Information. Its very useful and timely .