Pecos & Reeves Counties- Mineral right value

Hi .

I am being offered money for land that my father left to me. I didn’t get much info on the land but a company is offering me money for my mineral rights.

The offer lists this:

**All of Section 5, Block 8, H&GN, RR Co. Survey, A-196 & A-448,

It looks like the property extends into both counties

Can anyone tell me what type of activity is going on and what might be a good per acre price for those areas. It’s hard when you are in California.

Thanks for any help!


Jagged Peak has drilled two units in that section. Whiskey River State lease. Jagged Peaks investor presentations usually give some sort of overview of their activity in that area if you are real ambitious. But this area along the river has solid Wolfcamp wells. In the end I’d expect 10-12 wells to be drilled in this unit over a VERY long timeframe (20-30 years).

All of Section 5 is dedicated to those wells. Anybody in Section 5 should be getting paid from those wells. I assume your father’s acreage is leased and he is receiving royalty payments from Jagged Peak? If not, unsure what’s up.

Good price per acre is kind of hard to answer specifically. People will use all sorts of terms for “acre” if they are making you an offer. Mineral acre, royalty acre, revenue acre, etc. If you are leased I would not sell for less than $10k/net royalty acre ($20k per mineral acre if leased at 25%).

This is a pretty decent area, but Jagged Peak is going to sell out at some point, so they are just drilling a few wells per unit so that they can conserve and have more to sell down the line. Less wells in the near term means less /acre.

Again though, that is just a guess.



Shoot me an email. I saw you post about surface in a different thread that seams to have been taken down.