Need help selling or transferring an XTO Energy Working Interest

Ownership and Title
1

Hi all,

We own a small working interest in an XTO Energy gas well (Shelby Sabine 1H) in Shelby County, TX. We own the interest in a corporate entity and would like to sell the interest, or alternatively, transfer it out of the entity to a related individual.

Some questions that I hope the forum can answer,

  • This interest generates approx. $1000-2000 per year in net revenue. Does anyone have any thoughts on what a reasonable valuation would be on the secondary market?

  • Does anyone have any insight into whether operators (XTO Energy in this case) will buy back working interests?

  • What is the proper way to transfer a working interest? Are these interests generally recorded at the county?

Thanks for the assistance!

2

I will stay away from the valuation question. Operators will frequently buy back non-operator working interests. I don’t know whether XTO does this.

The transfer would be in the form of an assignment of leasehold interest. It may have additional language, like bill of sale, or assignment of working interest, etc. The assignment is then recorded in the land records of Shelby County, Tx.

3

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