I am suppose to sale minerals tomorrow in the N/E 4 of Sec's.20,27 and 22 Blk C8. Would anyone know if a well was completed and what is the going price per acre in that part of Reeves Co, Tx
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?pag...
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?pag...
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?pag...
James,
I don't see where any wells have been drilled in Sections 20, 22, or 27. There is a producing vertical oil/gas well(389-32922) in Section 25 to the N/E of Section 20 that was drilled by Clayton Williams in 2011. Unless you are desperate for cash I would not sell these minerals. If you do need to sell could you just possibly sell a percentage and keep a percentage for yourself.
Completion Report of well 389-32922:
http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method...
GIS Map of Reeves Co. Sections 20, 22, and 27/Block C8:
Clint Liles
I am suppose to sign a agreement tomorrow.They are offering 5,800 per net acre.How can I find out if that is a righteous offer.
James,
if they were my minerals I wouldn't take any less that $20,000 per acre. Period.
Clint Liles
Why that much there is no active drilling. Where can I go to find out if someone else has negotiated .
James - Take your time if you are uncomfortable with it. They won't go anywhere if they are really interested in your minerals, even if they say they will. Besides, chances are you can find a dozen other buyers to match or beat that offer anyway.
James,
2 other wells in the area:
API 389-34244--Completion Report shows 146 BOPD/902,000 MCF gas per day
API 389-33922--Completion Report shows 155 BOPD/818,000 MCF gas per day
Your minerals are in a great area for future exploration and production......
Clint Liles
Thank you for your information concerning those Sec's. What about Pecos county Sec 18 & 19 Blk's. C9,C2,8
I tried those #'s and they won't work on the GIS Map.
Do you happen to know the Abstract numbers that go with the Section numbers?
Clint Liles
I'm not sure but here is what I do. H&GN Ry.Co ; TWP8 , T & P Ry.Co. Hope it helps
James, are your minerals currently subject to an oil and gas lease? If not, it is highly likely that the mineral buyer is aware of an active leasing program in your area, and that those minerals are on the docket to get leased.
If they are already leased, another possibility is that the mineral buyer knows of future development plans for some of your sections and is trying to get minerals purchased before a well is permitted.
If your acreage is under lease to Clayton Williams, that may be some of the acreage that was recently picked up by Concho, a company that is regarded as one of the best operators in the Permian. This would be another reason to hold the minerals or only sell a portion.
If you want to post the name of the mineral buying company, I can do a quick title search to see what their purchase history is in the county, as well as let you know if it looks like they are immediately "flipping" the minerals they buy to a third party once they purchase them. If so, you may want to sell to the third party bypassing the flipper.
James, I just leased my acreage (C-8, Sec 26) for three years for $2,000/acre. I’m with Clint, if you don’t have to have the money, I wouldn’t sell, especially not for that price.
James,
Pay attention to Clint's comments. Now is not a good time to sell minerals in Reeves county. Buyers base their offers not on average per acre prices but on science and a multiple of return on the risk money. If you must sell, get some good science and compare the product to your family needs. Then draw up a purchase and sale agreement that meets your needs. Legitimate buyers in Reeves county will take you seriously and you will get a price fair to you. Negotiating and getting a higher price without science is a reflection of greed. That is what the buyers seeking 10X-20X returns are betting on. If you think you can take advantage of a 100 year old industry, think again.