Ector County Buy Offer

Location: Sec 16, Block 42, Township 2 South, Ector Co TX, Orchard Tract 1

We received an offer from Venture Royalty Partners out of Ft. Worth offering $1,500/Acre lease bonus, 5 year w/ 2 year option, 25% cost free.

For comparison I’d appreciate any input if anyone has received offers in the above location. I’m assuming the bonus is low since it’s the first offer. Probably negotiate for 3 years?

Thanks

You are correct thanks. Any ideas in whether $1,500/acre is decent? This location is inside Odessa city limits so I’m thinking horizontal production well is planned.

If your surface land is also going to be used as the drilling pad/location–and the company has no other location options-- could your property be worth much more? Do you have a single town lot or several acres? See the recent Midland Reporter Telegram article about Midland College’s negotiations with an oil company regarding a drilling pad.

Interesting! I too have been approached to purchase a leasehold by same company! My property is Sec 20 Block 42 Township 2 south. I basically was raised to never sell mineral rights! But this property would have me as a working interest partner. Curious if you decided to sell?

Does “working interest partner” mean you would be going into business with individuals you have never met? Would a conventional lessor to lessee oil and gas lease (approved by your o&g attorney) be an easier path to follow? I asked AI for information about working interest partner in an oil well and this was part of the response: “Unlike a royalty interest owner—who earns a portion of the profits without covering any costs—a working interest partner is financially responsible for things like drilling, equipment, and maintenance. Their share of the profits depends on their percentage of ownership in the well.”

Basically, I would not see any monies for a long time since I wouldn’t be able to pay up front costs. Id be a JIB(joint interest billing) owner! Until the production pays off my debt… any monies would be withheld. It could be years before I get a check! But I was raised to never sell mineral interests. Sadly Im not a royalty owner on this property.

Do you own minerals in the parcel description you shared? If not, what sort of ownership do you have? If you own minerals, why would you not simply lease your minerals to the company with a traditional oil and gas lease (approved by your attorney)?

Did Venture make you an offer to lease?

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