Hello! Formentera has just purchased my lease of which I own 51 mineral acres (within a pooled 604 acre pooled lease) in Abstract 310, the Indio Tanks formation. Formentera has pooled the 604 lease (of which 51 is mine) into a larger 1589 acres pooling area in Abstract 310 and adjacent abstracts and have drilled two wells carrying the name Gambler, both capped for now. My lease is a 20% royalty that is free of any production or post‑production costs including but not limited to development, production, compression, separating, treating, transportation, delivery, marketing, or like costs.” I am receiving many offers to purchase my mineral rights, and I am wondering if the latest offer of 350k is a good purchase price or is it better to hold on to my mineral rights in case Formentera decides to drill additional wells? I’m guessing that a 1589 pooling area in the Indio Tanks formation can hold more than 2 wells, especially if the first two are productive? Thanks in advance for the advice.
That abstract has more permits pending than just the Gambler. Lucille three wells going to the south east. A few feet will be in 310. Hooey (two) Brooks-Barrett and room inbetween those for more.
The Lucille wells have my property as offset, so I’m assuming that I’m not part of those wells.
Thank you for the other information, I will look to see if either of the wells you listed are in my lease area.
Whether you are part of well royalties depends upon whether it is an allocation well or pooling well and how they align the spacing using across your property. That abstract is larger than some around it, so location of your particular minerals matters. Look up the as-drilled plats to see where your acres sit. You can also look up the pre-drill plats on the TX RRC website.