I have inherited mineral interests in Martin County. We have been approached by Pony Oil Aquisitions and they are working on a price for NE/4 Section 2, Block 37 T1S T&P RR containing 167.4 acres. Does anyone have any information about activity or the going price for this area? Any information is appreciated.
Here is a rough map of that area. You are blue arrow. You’ve got rigs and horizontal wells in all directions, though not really on top of you. One would think, barring some macro event, that eventually that whole map will be covered with green lines. That’s the good news.
That could take 30 years or something though. That’s kind of the rub, timing drives price. And timing is a big unknown. If your acreage is covered in green lines in 2-3 years, its worth a whole lot more than in 10-20 years. At least from a present value, want the $ before you die, etc perspective. There are no permits or any indications of activity on Sec 2.
With no indications of activity I would guess the going price was somewhere in the $10-13k/NRA range but that is just a guess. If by chance you live out of state and have a small interest, I would guess the first offer people give you is going to be rather low. Good luck.
I would guess that is gross mineral acres, i.e. the size of the NE/4 of Sec 2.
So you may want to scrap that $2m offer
Thank you for those insights and the map. We are out of state now so the information from everyone is very much appreciated. And yes, NMA is the term I understand is used when selling rights to any future minerals found under the entire acreage. So yes, that is what is being entertained. Although I am not in any big hurry so might wait to see what happens.
Sorry, I misunderstood. 167 is gross mineral acres. We are only entitled to a small percentage of that as it has been in the family for 4 generations.
How many NMA you own and the royalty (1/4, 1/5, 1/8, etc.) is very important in determining the purchase price. Have they made an offer yet?
Ok, thank you. No offer yet, they are researching the origins of some other payments that have been going to the state.
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Just saw your post; I tracked down your ancestor’s lease (I think), whose jurisdiction your under, she looks to be Lena Reynolds and/or Earnest Reynolds, is that correct? Lots of people on here have tools for tracking down title information, which you should keep in mind. Ie. when Pony says they are looking for something, just double-check the document they’re presenting lines up with your ancestors title and subsequently your title. Please post to this thread with any new developments.