We are a small church that, years ago, was deeded a lease in Borden County, Texas and have received a letter stating interest in buying our royalty interest. I am trying to gather information on whether this is a legitimate offer, and or if we should hold on to the property? I’ve seen that usually the next question is location, so here that is, E/2 of Sec. 45, Blk 25, H&TC RR Co. Survey, Borden, County
What do you own? Your post says that you were “deeded a lease” which could be a leasehold interest such as an Overriding Royalty Interest (ORRI). You also say that someone expressed an interest in “buying our royalty interest”. That could mean a Non-Participating Royalty Interest (NPRI). In order to determine whether an offer is “legitimate” we would have to know what you own. (What does the deed say?) There are at least 6 wells producing from the E/2 of Section 45, Block 25. (4 Horizontal and 2 Vertical). Normally, an unsolicited offer in the mail is a lowball amount.
I would be very cautious about that offer. Looks like you have four horizontal wells recently drilled for the E2 of that section. Highpeak Energy. Are you getting paid on the Wolf Ranches 40-45 A 5H, L 5H, L 6H A 6H unit wells? They are fairly new and have may years of life left in them. If you are not getting paid, then contact Highpeak Energy Division order department and see what the issue might be. I suspect that there will be a few more infill wells drilled in that section and you would want the royalties from them if your acreage is in the drilling unit.
1 Like
I have some questions on some mineral rights in Dawson county and an offer from a company I just got. Can you possibly help me see what I’m looking at and if there’s any activity around East-Half (E/2) of Section 8, Block 35, Township 4 North, T&P RR Co. Survey, Abstract 670? If so that’d be greatly appreciated!
We received the same type of correspondence from an attorney representing an oil company trying to force us to sell our inheritance. The oil companies handling our wells wont give us any information or send us statements. Desoto Parish LA Sec. 25 T14N R13W. We don’t know what we have to begin entertaining a sale. Our inheritance is from my GG Grandfather H. Means. Any assistance is greatly appreciated.
Who did you get an offer from? MCM has been leasing in that area, including that section.
You might get more replies if you post your question under Dawson county.
You may have royalties from Exco Resources for seven horizontal wells in 25-14N-13W. Contact their Division Order department and ask to be put in pay status. Be ready with your driver’s licenses, probate documents and any other information that they need. Also check the unclaimed funds at the state treasury where she lived.
2 Likes
Great question. We are in the same position. My niece inherited mineral leases from her father and just received an offer letter to purchase a royalty interest in Borden County. We have no way of telling if it is a reasonable offer or as others have suggested in this Forum, a low ball. We do not have the deeds in hand so we don’t know any of the details. We are not sure how this game is played e.g., is this process like buying a house where there is a negotiation with offers and counter offers? Any guidance is appreciated. Thanks.
Be VERY VERY careful with offers like that. Do not agree to anything based upon a letter. Ask for a true complete contract and have a good oil and gas attorney read it. There has been a repeating scam in many states over the last few years that says the “royalty interest” in the header, but is actually a complete sale of all the minerals in that county, maybe everywhere, their attorneys, their mediator, etc. And they do not tell you that you have pending activity. Especially targets folks with older vertical wells that are at end of life when horizontals are about to be drilled. If there is a check attached to the offer, run to the nearest trash can.
If you want to give the Block, Abstract Name and number and the section, the forum can give current activity and perhaps permits nearby.
Listen to M_Barnes! Note that she said “oil and gas Attorney” not just any attorney. But before you do anything you need to know exactly what you have - meaning acres, section, block, Abstract no., County. As M_Barnes intimated, there is a difference between owning full mineral acres and royalty acres such as a Non Participating Royalty Interest -NPRI. You said that you don’t “Know the details” of what you own. The “details” are what you need before you do anything.
This topic was automatically closed after 90 days. New replies are no longer allowed.