GIS viewer help

I have mineral rights at Southeast Quarter (SE/4) Section 23, Block 31, T2N. If I did it right, I took me to A-187. If I did it right, can someone tell me what the lines coming from the north mean? Thanks.

Those lines represent permitted horizontal wells running through your property. They are named the O'Hagen 2047WA and 2048WA and are permitted by SM Energy. SM Energy has made some very good wells in your area and getting two wells is a great thing for you. Even a few acres can make you a nice monthly check.

I have mineral rights nearby - E 1/2 of Section 18, Block 31, T2N. I've received several letters from companies looking to buy these rights, and someone called yesterday with a verbal offer to buy them. Can anyone tell me what's going on in this area? Has it heated up? Any thoughts and suggestions are appreciated!

Sarah there are 2 approved permits as of Jan. 2018 for 9500' horizontal wells in Section 18 by SM Energy. Lots of activity by SM Energy, Apache Corporation, Legacy Reserves and Sabalo Operating in the surrounding area.

The API numbers of the 2 wells are 227-39287 and 39288. This link is to approved permit 39287:

GIS Map of Howard County Section 18/Block 31T2N/A-1301:


Clint Liles

Thank you so much for all of the great info, Clint! I've had a few offers from companies that want to buy, but don't know if holding on to it would bring more. Any advice is greatly appreciated!

My advise is hang on to your minerals...unless you are in dire need for money....and if so just sell a portion/percentage and not all your minerals. There are some good wells in the area and there are more than 1 productive formation in this area. You can always pass these minerals down to your kids or other relatives some day.

Clint Liles

I agree with Clint. Unless your interest is very small or you need the money to pay the rent, I recommend holding on to it. Minerals don't cost anything to own. You only pay taxes if they are producing. I also own the surface over my mineral interest, so I would never sell the minerals unless I sell the farm.

Thank you for your advise, Clint and Dave! I have a general question - If a company offered me $100,000 for my mineral interests (just an example), do you have any idea what they are figuring the minerals will bring them over time, etc? Trying to figure out if there's some kind of "rule of thumb."

Everybody has a different "rule of thumb". Some use multiple of 10x or greater the current estimated annual production but this does not factor in potential additional wells. I am not contemplating selling but I always look at the offers to see what multiple they are using. You have to look at the permitted wells on the TRC website to see if there are other wells planned. Even if there are no outstanding permits, the sellers also tend to know who is planning wells so extensive diligence on the part of the seller is important. Even though I am not selling, there is a price at which I would be stupid not to sell. Also keep in mind 40% might go to taxes depending upon your basis in the property. If you can do a "like kind exchange", you might be able to defer the taxes.

I'm not sure if I received a "crazy offer" or not. What price per net mineral acre would be a point in which you might sell? Not sure what to do.

According to the map and link to the permit for well # 39287 that Clint posted earlier, it shows the well to be in A-1301. I own some mineral acres there (an undivided interest in A-1301). The horizontal well appear to go through some of A-1301, but it also appears that none of A-1301 is included in the pool. How can that be? Do you have any insight that could help me understand the situation? Any thoughts are greatly appreciated!

Prices per net mineral acre are not as relevant because they are not tied to any particular well or production. Your other questions need to be answered by the operator or you need to have an independent research of the county and TRC records.

Thank you for the info, Dave! Do you know of anyone (O&G attorney or Landman, or ???) that I could hire to help me get answers?