Reeves County Purchase Activity

We own mineral interests in Section 25, Block C-17, PSL. We leased last year for $4,500/acre. We have a total of a little over 20 acres. There seems to be some interest now from different parties to purchase. Need to figure out what a fair offer is and if it would be in our best interest to hold or to sell. Any help would be greatly appreciated.

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I'm sure there are many variables that will affect value, but from what I've been seeing I'd not consider offers lower than $25k per nma.

Thanks, John...I appreciate the feedback.

Hi John...I've read by numerous people...never sell. We just got an offer for 545,000.00 to sell 20 acres in Section 38 and we are not accepting. Its the highest offer to come in and no wells have yet been drilled in the area.

Thanks, Rick! I am not in a hurry. I have 2 sisters that may entertain offers. More than anything, i am trying to gather information for the future.


I have mineral interests just a couple miles north of yours in Section 35. The offers are coming in fast and furious and just like you, I've been tempted. We have one well producing and 3 drill permits that are expired. My mom and I both have 8.889 NMA and the best offer we have received so far in $172,000.

In 2 different offers, both stated we have 14.22336 NRA, but I don't know what NRA stands for. I've been looking at this message board for a while now but just joined. I saw this thread and it was exactly what I was looking for. It looks like we are all right in the same area.


It looks like we're neighbors. I have interest in section 35 to the west of you.


"Net royalty acres" is the terminology used to purchase minerals in a standardized format that doesn't have to worry about the underlying lease royalty. The reason being is that minerals can be leased at differing royalties, such as 1/8, 3/16, 1/5, 1/4, etc. Thus, using "net mineral acres" is a bit arbitrary because the revenues are directly associated with the underlying royalty, and sometimes (when only a memorandum is filed publicly) determining the royalty is easier said than done.

If you own 10 NMA leased at 1/8, you own 10 NRA.

If you own 10 NMA leased at 3/16, you own 15 NRA.

If you own 10 NMA at 1/4, you own 20 NRA.

So, say a company comes along and offers $7,500/NRA. That would mean your price per NMA would vary depending on the underlying lease royalty.

If you own 10 NMA leased at 1/8, you own 10 NRA. 10 NRA * $7,500/NRA = $75,000, which is $7,500/NMA.

If you own 10 NMA leased at 3/16, you own 15 NRA. 15 NRA * $7,500/NRA = $112,500, which is $11,250/NMA.

If you own 10 NMA at 1/4, you own 20 NRA. 20 NRA * $7,500/NRA = $150,000, which is $15,000/NMA.

Thus, as you can see, the price per NRA in the above examples remains the same, and essentially ignores the underlying lease royalty. However, if the offer were to be put into terms of NMA, then the lease royalty must be taken into account, which makes things more difficult and time consuming.

It is a tough thing to try and explain NRA to mineral owners because they are so used to NMA terminology due to how leasing works. Leasing offers are always issued in terms of NMA since there is no underlying royalty (there can't be an underlying royalty if the minerals are unleased).

This may be a bit confusing, but rest assured this is how essentially all purchase offers are determined on the buying side.

Thanks for that explanation, BP. I understand the basic principle behind it now, it's just the math that's a bit confusing. My lease was signed by my Aunt, who I inherited it from, many years ago and has 1/5 royalty. So, my 8.889 NMA is multiplied by a fixed number to come up with 14.22336 NRA. If I reverse the math, my 1/5 royalty is worth 163.5% to my NRA. If I owned 10 NMA, my NRA would be 16.35?

Yes, that’s close. The formula is:

NRA = NMA * 8 * royalty

so, 10 * 8 * 1/5 = 16 NRA

Got it. One thing I've always understood was math.

Thanks again, BP.

Another way to figure out your NRA or NMA is to use this formula:

(your current lease royalty)/ .125 (1/8th royatly)= X

If you know your NMA you multiply by X to get your NRA. If you know you NRA you divide by X to get your NMA. You just need to know what lease royalty your minerals are held by. The standard lease royalty use to be 1/8th. So that is why 1 NMA at an 1/8th royalty is equal to 1NRA.

.20(1/5th royalty) / .125 (1/8th)= 1.6

So 10NMA x 1.6= 16 NRA.

Just another way to work it out I thought I would add..


Correct, because dividing by .125 (1/8) has the same effect as multiplying by 8.

NRA - net royalty acre.

Where is block c-17…

William – ~6 miles NNE of Toyah. Later – Buzz

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Thank you so much for posting this map. I have never seen this map and am so glad I finally know about where my holdings are. Really appreciate this.

You’re sure welcome. Some might have difficulty opening it. Enjoy. Linton

Thank you, I wish it was clearer…but thank you