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Oil and Gas Leasing Help
1

Hello all..I work for a nonprofit organization that was given the following property in a will: BLK 50-8 Tract 47 AB 2174 BLK 50-8 SEC 47 - we have 80 acres that are on both Pecos(13.25) and Reeves County(66.75). We are trying to figure out if we should sell or lease. We are receiving many offers, but have no idea what to do. Any information would be of great help. Thanks.

2

Don't sell is best advice you will ever get

3

I agree ... take some time to research this site for ways to manage/protect your "new" interests.

Good luck!

Pat

PHYLLIS TIMS said:

Don't sell is best advice you will ever get

4

I would first do some research and learn more about the mineral area, determine the nearby wells and their production figures. Do some calculations about what amount of income these would produce if a well was drilled and make a comparison between recieving royalty as oppossed to the selling price. The Permian Basin area has been very active in regards to developement and some very good producing wells have been drilled. Bottom line, do your homework and understand what you actually have and what it might provide over time.

5

Well, there's not really enough information on this post. You say that you were left a bequest of real property in somebody's Will, but you don't state if it is surface, mineral, or royalty estate in that real property, or some other interest, like a working interest, or some combination of those. I assume that you know that you have some minerals or you would not be on this forum and you would not be receiving "many offers." Despite being a non-profit, most of which need money desperately, you should NOT sell any mineral or royalty interest if at all possible. West Texas is an extremely desirous place to own minerals right now, so hold tight if at all possible. Persons and entities wanting to BUY your minerals or royalties typically make offers that are very disadvantageous for the Seller.

6

Also, look through the blog articles and instructional videos on the Home page of this website to get more info on what you have, especially the video on how to research properties on the Railroad Comission website.

7

Hey, Non-Profit!

The link below should allow you to download what I was able to find on your property on DrillingInfo.com, an online service I subscribe to. If not, let me know and I'll think of another way to get the information to you.

https://www.yousendit.com/dl?phi_action=app/orchestrateDownload&rurl=https%253A%252F%252Fwww.yousendit.com%252Ftransfer.php%253Faction%253Dbatch_download%2526batch_id%253DUVJqc0w1bWc1R1BtcXNUQw

There are nine (9) wells within about a mile and a half of your property that have recently been permitted to be drilled to the Bonespring (Trend Area) formation [the Coyote 48 No 1SW appears to be a Salt Water Disposal Well].

Five (5) of the wells are listed as "Drilling In Progress", which means they have already begun to drill them.

I would advise that you wait until you see what happens with a few of these wells before you decide to sell. There is a well about 4 miles to the east of your lands that came in at something like 783 barrels of oil per day (BOPD)!

I have set DrillingInfo up to send me an email alert on anything that occurs within 5 miles of your property. If you will accept my offer to become A Friend on The Forum, I keep you up on what is happening in your area.

Hope this helps -

Oh, and thanks for all of your good works!

Charles

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

8

Thanks everyone for your help.

9

Hey, Non-Profit!

You had a well come in just off your Southwest corner. It's Initial Potential (IP) was only 226 BOPD and 581 MCFD, but that's not too shabby.

It's first reported month shows 117.68 BOPD and 414.96 MCFD. Whether that is because of "Settling" or because it wasn't a full month of production, I do not know. Just have to watch the records and see what happens.

The following link should allow you to download what I found. I included an update on other activities in your area. Looks like you have two wells being drilled immediately to your West (one of these is a Horizontal), three wells being drilled immediately to your East and one being drilled to your South.

They've got you surrounded!

Go To:


http://www.yousendit.com/download/UVJnZHlpd0lqY3BwdmNUQw

Hope this helps -

Charles