My father was contacted about selling a fractional interest in South half, section 41, T3N, Block 32, tract1. I would like to know whether there is activity in this area and whether selling or leasing is in his best interest. Thanks
I see where 2 locations in Section 41 were approved in 2014 for horizontal wells(388146 & 38390)to be drilled but I see no spud report or production data so I doubt if they were ever drilled. There is some good production in the area. Numerous vertical wells to the east of Section 41. If I had minerals in this area I would not sell unless I was in dire need for some money. There are numerous horizontal wells to the west, southwest and northwest of Section 41. A horizontal well(38372) next door to the west in Section 42 was completed in Feb. 2015/oil and gas producer/permitted for 9,000'/Sprayberry formation. It is still producing 130 BOPD/146,000 MCF gas per day.
Production Data on well API 227-38372:http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab=init&viewType=prodAndTotalDisp&methodToCall=fromGisViewer&pdqSearchArgs.paramValue=|2=07|3=2015|4=06|5=2016|103=46420|6=O|102=08|8=specificLease|204=district|9=dispDetails|10=0
GIS Map of Howard Co. Section 41/Block 32T3N and surrounding area:
CLICK ON MAP TO ENLARGE
Thanks so much for the information. Can you tell me any more about ‘fractional interest’? How does property end up divided that way? Seems like different ‘interests’ could all make different decisions about mineral rights on the same parcel. I assume a small fraction will mean a small return. Is there a point at which it is not worth enough to hang onto it?
Hello Beth. Fractional interests usually come about through inheritance. Parent leaves everything to 2 to 3 or more children and those children each marry and have children of their own to leave the estate to. In a few generations you could have 50-100 owners of what started as a monolithic block. Eventually it could get to the point that the paperwork on the interest becomes more costly than the interest is worth. Oil and gas being fairly valuable stuff, even 1/10th of an acre can have some value.
I inherited a small interest and convinced my brothers that we should all give our share to our cousin who also shared in the property. The administration would have cost each of us more than the interest was worth individually, but cousin who now has 4 times the interest may see something out of it and it stayed in the family.