My four sibs and I recently realized that we had inherited .04 acres minerals rights near a fracking oil well that began production 2 years ago. We have been contacted by landmen 7 or 8 times during the past 2 or 3 years offering to purchase the mineral rights. One landman told us that the fracking operator has already harvested 800,000 barrels of oil. Another has offered us $1700 plus is will do all of the paperwork for us at his expense. Is this a good deal? Since the parcel is so small we are wondering if it is worth the cost of hiring a landman to clear the lease and a lawyer to file the paperwork. We do not have a copy of the original lease, however, the Lea County Clerk has a record of the purchase and there has been no movement on the lease since 1978. Should we follow up on this or is it too expensive to do so to make it worth our time and money? Thanks for reading this. Your advice would be greatly appreciated. The land is located 40 to 50 miles west of Jal, NM, in section 25.
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Contact the well operator and talk with them and let them know you have had offers. I would not sell but lease and get your bonus money and production revenue. They may drill deeper and or horizontal in another formation.
40 to 50 miles west of Jal is a kind of strange description. As that is a lot closer to other towns than Jal. Its not even in Lea County.
What are the legals or what are the wells?
I have a hard time seeing how .04 acres is worth much of your time, or a landman’s time to offer, if that is correct. If its leased at 25% and its in the greatest place ever, it may be worth $4k.
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