Question about Reeves Co. Section 5/Lot 7 ...I'm new at this!

Good morning everyone,

We recently found out that my spouse's family owns land in section 5, lot 7 in Reeves County. After years of dormancy, we started to get offers to lease our land. Apparently, it's been producing. The family hired a lawyer, and negotiated a lease for a bit over $15,000/acre plus 25% royalties. Apparently, there is also royalty money from the past 5 months in escrow. We should know within the next few weeks, upon signing the paperwork, how much money we have coming to us in royalties.

My questions are:

1. Does anyone know how active this land is? I'm not sure if we're talking a few barrels/day or if this is a major operation.

2. Does anyone in a similar situation know how much we could be looking to receiving per acre in royalties? (Each family member owns about one acre.) I have no idea if we should be expecting a few dollars per month or something more substantial. I'm assuming since they paid such a high price to lease the land, it must have some value in terms of production.

Thank you in advance for any help/information. We're both teachers and have very little knowledge of the industry, something we hope to change!

Hi Kenneth, welcome to The Forum.

Did you mean Section 5, BLOCK 7? Is there anything else that goes with the legal description?

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

Oops, you're correct, it's block 7. Shows how much I know about this.

More specifically, the family owns just over 11 nma, of which we own 1/9th, so just over an acre for us.

More specifically:

"Section 5, Block 7, H&GN Ry. Co. Survey

Reeves County, Texas"