(E/2) of the (NW/4) of the (NW/4) of the (SE/4) of Section 247, Block 13, H & GN RR Co. Survey

Hello. Would appreciate a reality check on a recent offer to sell my entire five acres.

There is currently a lease on the property which expires in June. Was originally paid $10,500 per nma bonus and 25%. The offer I recently received was to immediately sell the property for $25,000 per nma ($125,000) total. Any thoughts on this? Is there much activity in this specific area? Thank you.

Mr Peterson I see where Continental Resources has submitted 2 permits for 2-- 10,500’ Wolfcamp wells in that area as of 12/10/2019/these permits have not been approved yet…the API #of those wells are 389-38807 and 38815


GIS Map of Reeves County Section 247/Block 13//////the BLUEstrong text X on the map is your 20 acres



The acreage you identified is good acreage that will eventually be drilled. If the lease is expiring then the operator either has to drill or lose the lease. If that occurs then Centennial (permitted operator) will have to pay to re-lease. If you are lucky, Noble will lease your acreage and pay you again for a lease so that 10,000’ laterals can be drilled based on there acreage position. As far as what it’s worth, it’s worth at least $50,000 /nma. They will not want to pay that because they want it on the cheap. If you do not need to sell then you shouldn’t. There is too much upside in the future to sell.


Thank you everyone for the replies. There seems to be a lot of interest over the last few months in this acreage, I guess just for that reason. I don’t need to sell. The company making the proposal was extremely eager to close the transaction as quickly as possible.

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‘The company making the proposal was extremely eager to close the transaction as quickly as possible.’

Always a reason to be skeptical of a proposal.

This is good acreage and I wouldn’t sell if I was you, but if you do you should use one of the public auction websites (there are a couple good ones, but whenever I suggest specific sites they block my posts…). That being said, at $25,000 per net mineral acre its actually a solid offer.

That June lease expiration date is nice. You might be getting a new lease bonus or some wells drilled there by then.

We have 5 acres in the same section. I would not sell, if you don’t have too. Also think of the capital gains, owch

I think I will hold out for a while and see what happens, unless an offer I just couldn’t refuse comes along…

Jeff, I guess I responded the other day to the email notification which made my response undeliverable. So, I’m just resending it inside the forum. Anyway, your best offer will come from the Operator right before completion. However that will not be good enough at least for me. I know what my property is worth. Oxy offered $33K but I told them “No Thank You”. They were not surprised. It’s worth almost twice that and still giving them a 50% profit. The mineral buyers are a shady lot, mostly bad and some just okay. I talk to them all the time for fun. The younger guys release info inadvertently since they are trying to reel you in at 20 cents or less on the dollar. The ultimate determinant on the value of the land is the quality of the area and the number of benches or productive horizons.


Mike. Thanks. I am learning more about the buyers every day. It has become apparent why they are interested in my property, even though it is only 5 acres.

Great info mike, Jpeterson what have you learn about why they want your 5 acres?

They all want the same thing, but it depends on who it is. If the company approaching you is the Operator (Centennial) then they want to drill and get you out of the way so that they can enhance their profit on the wells they would drill. If its a separate mineral purchaser, then they most likely are trying to flip minerals and make a quick profit by offering you a sub-standard price.

Its not the operator, so I’m guessing you are likely correct

Hopefully the 2 permits will be approved