Quite to our surprise, my 5 siblings and I learned that we had inherited 78.75 nma in BLk 34 Section 75 Ward county Tx. As you can imagine we were all too eager to sign a lease when our landman informed us that Exxon was interested in our site for a gas well. The possible scenario he gave us was for a well to produce $ 50,000 a day, $1,500,000 a month , and for each of us 8,350 per month. That will get anyones attention, especially when you live 1,500 miles away, no nothing of oil/gas and are full of hope. Whether that is really possible in section 75, I have no idea. 13 years later, not a phone call, not a dime. (Other than initial bonus paid) So, here we are today. Happily we still own those 78.75 nma . On Section 75 today, there is a gas well producing since 2001. We know nothing about it, but must not be entitled to royalties since none of us have ever been contacted. Much of the ignorance, admittedly is our fault and we regret ignoring our inheritance for the last 13 years. Suppose we thought it just wasn't worth anything after all. Today I was contact by a landman and made an offer to buy our interest in those 78.75 nma for 1,500 an acre or $ 118,125.00. Turns out they DO have some real value. Now question is : How much? For those who know our area Blk 34 Section 75, is that a reasonable offer? We prefer to lease, but how sought after is our specific area? We are not in any hurry to sell, believe me, but after our first experience ( remember the Exxon scenario ) we kinda just dont know what to think. For our neighbors in Blk 34, or those who know, your advice is greatly appreciated. Thank you
Having little experience in oil & gas leases, my gut feeling tells me that you should hang on to the lease and NOT sell it. Instead, you may want to lease it for $1500/acre and KEEP the mineral rights. Ward county seems to be a hot spot for oil and gas leases at the time and you may very well be shooting yourself in the foot if you were to sell those rights. By leasing, you could possibly get royalties from oil production if/when wells are drilled or pooled with other leases. If you sell your mineral rights, you wouldn't get any royalties. And what if an oil company just happens to strike black gold on the lease that turned out to be a good one? You'd be left holding a bag of $118,125 versus much more if you had just leased. By leasing, you're going to get around the same amount (+- $118,125) in the form of a signing bonus, yet keep the mineral rights.
I have an interest in the same survey in Blk 33 that my family recently leased for a figure close to what you were offered to sell.
This is just my $0.0000000000002 worth of opinion based on ignorance of oil & gas leases.
Ward County and Permian Basin are some of the most active drilling areas in the entire country. Without looking at a map to know exactly where sec 75 is in block 34,I can tell you our property in block 34 leased for well over $2000 p/ac with a 25% royalty. I know several others that ha recently leased for$2500 with 25%!! If you want more info email at hud12450@yahoo.com I can give you several landmen and some direct lease Oil and Gas cos actively drilling Good Luck…Lease Dont Sell!!
It would seem rather foolish to sell, IF in fact these minerals could possibly be leased and retain the rights to royalties and future earnings. I’m just beginning to educate myself as to what we have and how we might get the most from it. Several have said " look, if you had something the oil companies and landman would be knocking at your door ". That has NOT happened. Interest has only been to sell , interest by landmen because of my ad here on this forum, which btw has been outstanding. Looking at the map we seem to be at the edge of where much past activity has taken place. I’m just hopeful there will be a renewed interest in our location. I suppose location is everything. I’m going to follow some leads we’ve been given here. Thank you much!! Gonna keep learning.
William Tandy Hudson said:
Ward County and Permian Basin are some of the most active drilling areas in the entire country. Without looking at a map to know exactly where sec 75 is in block 34,I can tell you our property in block 34 leased for well over $2000 p/ac with a 25% royalty. I know several others that ha recently leased for$2500 with 25%!! If you want more info email at hud12450@yahoo.com I can give you several landmen and some direct lease Oil and Gas cos actively drilling
Good Luck…Lease Dont Sell!!
I have been advised never to sell minerals if you are in a situation where you don’t need the money. There is activity in Ward county. I have been called about a pipeline survey on our property. Nothing has come of it yet, but just received the call Friday.
Tony
Never sell the property or mineral rights. You will need a good Texas Attorney to negotiate any and all leases with oil companies and do not deal with them direct or you will "GET THE SHAFT" so to speak. Other information about Ward County and the current lease prices for bonus money is correct and a 25% royalty.
You can go back in the files of this site and read a lot of valuable information which will answer many of you questions, it will take time and research but it will save you $$$$$$$$$$$$$$$$$
Jan,
I went through this process of leasing a "Right Of Way" (ROW) to a pipeline co two years ago and it took over a year to finally negotiate the lease using a Texas attorney.
The pipeline co will send you a letter in the mail with a standard lease agreement benefiting them totally and the "Texas Law on Eminent Domain." This means if you do not reach an agreement on the lease for the ROW the pipeline co can and will condemn the land for the needed ROW; they will pay you the going rate for the per ROD (Measurements are in RODS not Yards). Also the lease is forever and passes with the property and heirs. Once signed that is it, you do not get annual payments, etc. WE got the pipeline co to pay the legal fees in addition to the per rod payment for the lease. Get an attorney if a company wants to lease, don't do this by yourself as there are many facets to the process to protect you.
Jan Anderson said:
I have been advised never to sell minerals if you are in a situation where you don't need the money. There is activity in Ward county. I have been called about a pipeline survey on our property. Nothing has come of it yet, but just received the call Friday.
Thank you for your advice. . I do have a good attorney who lives in West Texas and he is advising me. Feel like it is money well spent, at least until I am more educated. I am getting ready to ask him what I need to do just for the survey part. Dates of survey, release of liability. Any suggestions?
I just had a call an hour ago from another landman in response to my ad. He was talking about the possibility of including our property in a company’s thought of leasing a 4,500 acres. Pooling etc. honestly, I don’t know enough about what he was saying. It came fast and the details run together, but he said he would be looking at where we are. He said he could always buy them but if we wanted to or to lease he may be able to help there also. Interesting what a small ad can do!! I was hoping to hear from someone their view of the Exxon scenario painted to us years ago, whether that was just a sales pitch or really possible on a small acreage like we own. Just curious.
Tony, we would be happy to bring you up to speed on some leasing basics and the production surrounding your acreage, as well as introduce you to an operator that we have a good relationship with that is actively leasing in Ward. Feel free to email me at david@hilltoproyalties.com and I can send you my thoughts.
I leased in Blk 34, Sec 72 for $2,500/nma in November, 3-year primary, no option, to Jagged Peak Energy, Denver, Colorado.
After looking at maps on the Texas Rail Road Commission web site, there seems to be a lot of activity taking place near BLk 34 Section 75. This may prove to be a promising area since oil companies are now going for the deeper oil and reworking older wells for horizontal production.
Suggest paying attention to responses that have indicated that you should NOT sell your mineral rights. It may not be a wise decision to do this.
If you think you would like to sell our minerals, please contact me.
Michael Hinsley
432-697-3018
mdhinsley@mac.com
Now I am really confused. One of the landmen I have talked ( his interest has been in a purchase ) has made an effort to answer my question about why there appears to be a well on a area we own mineral rights but have never heard a word about it. After contact with the operator, he tells me it appears we have the right to negotiate the lease but are not entitled to any royalty. If you read back to the lease we signed in 2000 we were led to believe we would GREATLY benefit from the royalty. A landman deceive us, or withhold the facts ? Surely not ! Is this common? If this is so, how would we ever find out if this applies to ALL 78.75 nma ? Does a title search reveal every aspect of your mineral rights? Friday I was contacted by a party in Dallas about negotiating a lease for our ward county minerals, will he be able to answer definitively this question. As you might guess, if this is true it changes everything.
Since there seems to be a lot of confusion, I would suggest getting an attorney who is familiar with oil/gas leases to help sort things out. If you're not familiar with these sorts of transactions, it would behoove you to protect yourself by getting sound advice and know what all your options are for this lease.
My question for a lease signed in year 2000: Is there already a producing well on this lease? If not, what were the primary and secondary terms (in years) for this lease? It seems to me if there were a three year primary and/or a two year secondary on the lease and nothing was done, then I would suspect you are free to negotiate with anyone you want since that lease appears to have ended. For some one to tell you that you are not entitled to a royalty seems to be odd; provided you own the mineral rights.
From my perspective, the landsman works for who ever pays him for the work and not the mineral rights owner. He's going to structure the lease agreement in favor of the operator; not you. And, the landsman may just tell you anything in order to get you to sign the lease. That's why you need a good attorney to help sort out the wheat from the chaff if you are not familiar with oil/gas leases, royalties, etc.
Again, this is my $0.0000000000002 of opinion when considering Obama hyperinflation based on a very limited knowledge of these transactions.
Tony Larman said:
Now I am really confused. One of the landmen I have talked ( his interest has been in a purchase ) has made an effort to answer my question about why there appears to be a well on a area we own mineral rights but have never heard a word about it. After contact with the operator, he tells me it appears we have the right to negotiate the lease but are not entitled to any royalty. If you read back to the lease we signed in 2000 we were led to believe we would GREATLY benefit from the royalty. A landman deceive us, or withhold the facts ? Surely not ! Is this common? If this is so, how would we ever find out if this applies to ALL 78.75 nma ? Does a title search reveal every aspect of your mineral rights? Friday I was contacted by a party in Dallas about negotiating a lease for our ward county minerals, will he be able to answer definitively this question. As you might guess, if this is true it changes everything.
It’s becoming clearer by the second what a muddled mess all this could be or become. Thanks for the advice on an attorney. My mind is mush right now. Not that we have to do anything, just want to do the RIGHT thing. Kinda disappointing to be presented with the idea that yes you can lease your minerals, but oh by the way, any royalty will be enjoyed by someone else. Still the lease bonus is not something to be overlooked and could be significant on 78 nma. Well, it’s time to see what the siblings are thinking and what specifically we will do. Thanks
Well, I own 5.48 acres in Ward County; Lot 12, Section 11, Block 33. I would like to know; is there any activity going on in the area where the property is located? I have yet to be contacted by anyone regarding the a lease option. I own the surface right, how do I know if I own the minerals? My deed doest not say whether the seller retain the mineral rights or not.
Do the the rigth thing, don't rush to sign anything you don't understand, Tony. Almost four years ago I rushed to sign a lease contract with a landsman in Culberson County, boy, did he took me for a ride. I signed 43 acres at $200 an acre. Came to find out, I could have $700 to $1000 an acre during the time of the signing. I feell so dumb.
2137-Etienne (190 KB)
Jan Anderson said:
Thank you for your advice. . I do have a good attorney who lives in West Texas and he is advising me. Feel like it is money well spent, at least until I am more educated. I am getting ready to ask him what I need to do just for the survey part. Dates of survey, release of liability. Any suggestions?
Jan,
We were contacted and leased to "Enterprise Crude Pipeline LLC" 601620 Highway 191 Suite 250
Odessa, Texas 79762. I think this is the primary crude pipeline company in the area as it has consolidated several older companies over the last several years.
Mike
Looking at a map, it appears that there is a well on Section 75 - send me your email and I will send you a copy of the map for your records.