I am helping a friend who received a letter from a Land and Minerals LLC company saying that they want to purchase the oil & gas and mineral rights on a property that is in Howard County.TX This is on land that a grandparent sold but retained mineral rights.
540 acres of land Section 45, Block 32, T-I-N T&P RR CO SURVEy A-150 Howard County TXY
I need some guidance here.
How do we know what they value of this should be?
What should I do?
Are there companies who can help us with the leasing?
This company wants to buy the mineral rights.
Any help would be appreciated.
Good morning Frances,
These minerals are located in the city limits of the town of Big Spring, Texas. Some fantastic oil/gas wells have been drilled at distance from these minerals. Drilling is slowly progressing to this area. One of the wells that has been drilled 3 miles West Northwest Completion Report showed 1,606 BOPD(Barrel Oil Per Day)///715,000 MCF(Thousand Cubic Feet)gas per day. There are several locations in the area that have been approved for drilling. If your friend owns 100% of the minerals on this acreage I would say these minerals are possibly worth $30,000 per acre. I suggest you have your friend get in touch with Wade Caldwell/Oil and Gas Attorney/San Antonio Texas. Wade is a member of this Forum and knows this area well.
If these were my minerals I would lease them and not sell them. Just my opinion
GIS Map of Howard County Abstract 150/Section 45/Blk 32 T1N:
Link to Completion Report on well API 227-38257:
Thank you for your help. Will give this to my friend to contact attorney.
I would just say don't get too excited. Just because the legal description mentions 540 acres does not mean that your grandparent reserved 540 net mineral acres or that your grandparent owned 540 net mineral acres at the time of his or her death. More likely, he or she owned a fraction of the entirety of the 540 acres, for example 5 acres out of the entire 540 gross acres, or a 1/108th fractional interest. But I do hope it's a much larger fraction, like 1/1 !
My name is Ryan Williams and I work with Permico Royalties in Mildand, TX. I am extremely familiar with and work in Howard County every week. If you look on a map you can see how close we are to this area which allows us to be extremely familiar with the area as well as what prices are being paid, etc. I would love to take the time to discuss your friends minerals with you, and or your friend and what some of the best options may be moving forward. Our website is below. I look forward to hearing from you, and we would be happy to assist in any way. We can also assist in determining exactly what it is your friend actually owns.
We also have a sister company CJM Resources where we do leasing as well. So whether your looking to sell, lease, or just get some friendly advice from a local I'm happy to help.