I just received an offer for a small non-participating royalty interest (NPRI) in Dawson County Section 24, Block 36, Township 4-North. I’m wondering whether the offer is in the right ballpark.
There are a couple of 2010-era vertical wells on the property that were operated by Endeavor for some years and have been taken over by Diamondback. For my 2.4 NRA the payments have amounted to couple of hundred dollars a year for some time. The offer proposes to pay $20k for my interest, which is about $8500/acre.
Does this seem roughly in line with the going rate for the area in 2025? And can you recommend a competent O&G attorney in the area who can help me review the offer and possibly iron out any irregularities in the chain of ownership?
Are you aware that there are brand new horizontal wells in the area? What abstract are you in? Thorpe A-1179? Or a different one? Looks like a rig onsite drilling. Hibernia Resources has the new wells already completed. IKE Operating for the new two. Contact them before considering a sale.
The deeds I’ve seen refer to Abstract 604 (Block 36 T4N Section 24), In look at the RR commission GIS viewer, I see two permitted horizontal wells (at least one of them Hibernia) that will cross the area where I have a little tiny NPRI royalty interest (2.4 net mineral acres).
What would be my goal in contacting an operator like Hibernia directly? To gather info, to seek another bid, or ???
If you are already getting paid on vertical wells, then depending upon whether the horizontals are pooled or allocated, you may automatically get payments for them if your acreage is in the spacing unit. You can contact the Division Order analyst at the operator to see if you will be included in the well(s). Horizontals can pay much higher royalties than than vertical wells. The buyer wants those royalties and any future ones.
I had a family member sell some of their mineral rights last year. They are about 3 miles from where yours are. They sold for $9,375/NRA. There are no active wells or permits within 2 miles of them
Thanks, Johnathan. Grateful for the info. The offer letter I have in hand is $8750/NRA, which strikes me as on the low side given the horizontals currently being drilled under my little tract.
Are you sure about the $9,375 being per Net Royalty Acre. If there were no producing wells or permits within 2 miles of those minerals, how did they compute royalty acres without a lease.
Helpful info, thank you. How would you find if there are any horizontals under vertical wells I have interest in? I am in Section 27 Block 34 Township 5 N. Dawson County.
I’m curious. I have 3 sections just to the east of your section. When I look at the GIS map, I don’t see any horizontal wells on your section. How did you come to the conclusion that there are horizontals through your section 27? I have an unleased 900+ acres (mineral rights only; no surface ownership) & would like to lease especially see the horizontals 3 sections to the south of mine. Our current lease expired about 2 months ago & no one is jumping to lease.
There’s probably some slick way to get the GIS viewer centered on a known tract but I’ve never used it. I simply happened to know that the property of interest was south of Lamesa, adjacent to Hwy 137, and just north of farm road such-and-such. Moved the view down 137 until I spotted it.
