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.
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.
Yes, those are two of my ancestors that he is looking into. He is researching some others as well. I have been trying to do this from out of state since I discovered the missing interests that were going to the state. There is quite a learning curve and not all the documents are available online. We are moving forward cautiously and won’t be doing so without the help of a lawyer. Thank you, I will keep you posted.
One thing I recently found in my research of this property is a discrepancy in acreage. My division orders all state that this section is 166.4 Acres. My sister and brother both sold their interests this year. I found those documents online. My sister’s sale was for 166.4 Acres. My brother’s sale was for 199.something acres. Would there be any other reason for this discrepency besides an error by the oil company when they wrote the division order? If you look at the section on the map, itis definitely larger than 1/4 of a block. If the block is 640 Acres…It looks like it is 160Acres plus another 40 Acres. Has my payments been shorted all of these years? If so, do I have any recourse? Any thoughts?
You should also check with the TX Sec.of States office, you may have money in suspense. I have received offers from Pony in the same area, I’m getting much better offers from others, so you may sit tight. I got a third one today (all in less than a month).Good Luck. RMB