Less production in Block 5 section 14?

Received a letter today asking to buy or lease my net mineral acres. In the letter it states, “The wells surrounding this area are not producing as much and not sought after any longer. This is a perfect time to diversify and take advantage of this over market valuation.” Is this really true? The offer is $4000 less per mineral acre than I have previously been offered which makes me wonder. We are in the Hollywood Unit and as far as I have been able to tell, this is a good area. Any opinions?

Hi Kathleen!

It seems like I looked up the Hollywood Unit for someone else just recently. It is in an excellent area with 5 Wells Permitted in it so far, 3 of which are currently being drilled.

I didn't map them out for you, but in addition to the 3 wells within the Hollywood Unit that are currently being drilled, there are an additional 12 wells currently being drilled in the general area. It would be exciting to stand out on the open prairie at night and see 15 rigs all lit up!

As far as production, I have attached a map and table of 34 currently producing horizontal wells in your general area, all of which appear to me to be producing just fine.

Two Notes:

In the table when you see a number of wells with the exact same production figures, those wells are using the same storage facility (Tank Battery) for oil and metering system for gas, so their collective production figures are reported that way; and,

When you see the figures for Barrels of Oil and MCFs of Gas, those are production figures PER DAY.

Based upon what I can see from my brief review of your area, I think whoever sent you that letter offer is blowing smoke up your skirt. Save it for laughs if you want to, but I advise that you not put too much credence in to their letter or anything they have to say.

Hope this helps -

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas


Kathleen, we get letters offering to buy or lease our land in Reeves at least once a week (and I am always suspicious of the offers to lease because our land IS under lease). About one of those letters every month uses the "scare ploy" similar to the one used in your letter. Mine go into the trash; I would advise the same for you.

Thanks, Charles...I rarely even open these, but for some reason I did this one! They always make it sound like they are the good guys and they are doing me a big favor!

Thanks, Mary. I, too, get them, but not usually quite so specific . The only thing that concerned me was that he indicated that we had talked before and I couldn't remember it. Probably just one other thing to make me want to call him.

Good Lord 'N Butter... NOW I've heard everything!

Not that there's anything illicit about mailing Mineral and Royalty Owners offers, that happens every day all over the country, but there should be limits to persuasive efforts.

I dunno, I've thought how maybe one of you Owners should start a message string where people can scan in and upload all the offers they receive in the mail. That might help people "learn up" a little about what is happening out there.

I'd especially like to see examples of the Totally Bogus (and yes, I realize I'm dating myself using that one) "Royalty Lease" offers being sent out included.

Glad to hear you are both cautious and interested in becoming more informed before making any decisions. Every Owner here on The Forum should be.

Let me think about how to start it. I hate to name names....have always avoided that, although I have a couple of names that have done a beautiful job for me when I was negotiating for my mom when she was living and could use the bonus money! I think that that is a great idea. Maybe Mary would be interested in helping me get it started.

Kathleen, I received a letter worded exactly the same as yours. It is from Nickel River Royalties.

Yep, Got the same one.

Same company

Really a letter trying to discourage us from trying to hang on to the land....did yours say he had talked to you before?

YEP!!!!! Never heard of him before. Have received AT LEAST 8 letters in the last couple months that my brother has been collecting.. But that one, from Nickel River Royalties, said that they had talked to us before. NEWS TO ME!!!.

Any idea what what they are leasing property for in the southwest corner of Reeves County? We just got a letter from Nickel River Royalties.

Mr. Lutz,

The Southwest Corner of Reeves County is primarily in the "Alpine High" area currently being exploited by Exxon Mobil.  I am not sure how you can determine if your property is in that play but it definitely something that you should explore!  This is a very "Stacked Play" and includes multiple formations!!

My best regards,

Stephen Watkins (601) 347-8153

Thanks for the info! The prior lessee did not renew the lease for reasons unknown.