I’ve recently inherited 1.12 acres in Midland TX. It’s currently being leased and it’s putting out about $2000 a year. Back in 2015 it put out $18000 a year. What would you all consider a fair offer? One guy offered me $15000. I don’t think I should sell. Is this oil close to the big oil shelf they found? Thanks for your help!!
The offer is fair considering current production, but eventually there will be horizontal production in this section so I wouldn’t accept anything less than $30,000.00.
For reference, here is your section (yellow) and surrounding horizontal drilling. Assuming you are leased at 1/4 royalty, like George said, fair price is north of $30k. Good luck.
Thank you so much! I appreciate this more than you’ll ever know. Bless you!
I too inherited some mineral rights in this section, along with 2 others in my family. My brother sold his share and my cousin has passed away and I am guessing passed it down to her children. I am curious how the production is in this area and if it will get better soon. I am receiving unsolicited offers more frequently now. Production has been very low and I was told by Concho back in April that The STO 11 wells were shut in for the six well frac on the tract to the west. The wells will be watered out for a period of time but should resume production in a few months…Sec.11 Abstract 52 Block 40 Township 2-S Approx. 640 acres. Any advise would be great.
To date you just have the COG STO 11 vertical wells. At some point it’s like you will get horizontal wells drilled that cover (presumably) all of Sec 11 and the S/2 of Sec 2.
If/when that happens you should see your check increase dramatically. It may still make sense to sell, but you don’t want to sell based off of what you are currently getting paid.
Here is map of horizontal wells in that area. You are the blank spot in Sec 2 and 11.
Thanks so much! I have learned so much already but still feel like I want to learn more.
My wife received a family interest in mineral rights in section 11, Block 40. We just received notice from Concho, they want to modify the lease agreement to enable them to disable the vertical wells and potentially construct horizontal wells in the future. Presumably when the market shifts. We are new to mineral rights and have no experience.
We are long term investors and are willing to wait for the market to turn.
Any advice? Suggestions?