I inherited 20 acres in Section 7, Block C-20, PSL in Reeves County a few years ago. We leased the mineral rights to Panther a little over a year ago for a $3000/acre lease bonus payment and a 25% royalty. I have been receiving offers from various companies to purchase my interest for $10,000 per net mineral acre in the last several months. Can anyone provide insight into what is happening in this area and at what price it might make sense to sell this acreage?
North Sands Lake Prospect -- Section 7, Block C-20 PSL, Reeves County
There are some pretty nice Phantom Wolfcamp wells just to the north and east of you drilled by Cimarex and by Panther. They are expensive wells, but have nice results. I'm not sure that drilling will occur any time soon, but the offers you are seeing are reflective of the results in the area. The Ward/Reeves county line is a good area to own.
Regarding price, that is a personal decision based upon your timing and return profile. In my opinion, $10,000 per acre is not a terrible number, but you could probably get more in a direct negotiation.
Thank you so much Brandon! I hope you had a Happy Thanksgiving. Do you have the name of a land man or attorney who could help me negotiate? Have you heard of Stag Land Services or Matthew Hembree?
Do you know where I could get a copy of a plot or map that shows our property and wells in the surrounding area?
All the best,
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