Dusty, here is a link to the notice-for-bids form for the January sale. You can compare it to the bid tabulation form. A tract just a mile away from ours went for $6000 an acre, but as Buzz says, others didn’t receive minimum bids and you will not find them on the tabulation form.
mchammons – Arris spud the MAROON 80 #1H 12/11/15. According to RigData’s weekly drilling report the rig moved prior to w/e 1/8/16. While the surface hole location is in SEC 81 (adjacent and west of your SEC 80) the production lateral and bottom hole location are in SEC 80. Arris continues to drill in the immediate area. Later - Buzz
Kerry - Thanks for sharing it, that’s great information.
mchammons – ‘thought it would be good to know where’ you are located… Later – Buzz
Buzz, thank you for the information. I guess I need to contact Arris. Do you happen to know where the 11,221 /acre track is located relatively speaking?
Can anyone send a pic of where the 11,221 /acre track is located in Reeves?
It is our understanding Arris is drilling or about to drill on our area. Therefore, I need to get more educated as to what this all means. I do not have a map and thought it would be good to know where the hot spots such as the foregoing is located relatives to ours. Thanks for any help.
A well was spud on Section 36, Blk 6 last month. The lease bonus was driven up by the fact that the lessee was almost guaranteed that they’d have some of the acreage held by production, thus justifying the purchase price. Once acreage is HBP in that area, an operator can reasonably assign a value to it north of $20k+/acre, and even more if there is no pugh clause.
Wolfcamp Shale – GEEZ! Handy to know. Thanks – Later – Buzz
Potential price in a divestiture. Last month Concho paid $30k/acre to buy 12,000 net acres from Jetta in Reeves & Ward. That per acre price is substantially higher than what a mineral owner would realize in a sale for a variety of reasons, such as the oil company is getting 75% or more of the oil/gas produced, there is infrastructure on the property, existing cash flow, time invested developing the play, etc…
8-4-15 GLO Sealed Bid Sale, $11,221 per acre winning bid -SEC 36 BLK 6 H&GN, 7 miles SE of Pecos in the Toyah Lake area. 120-acre tract received multiple bids (5), three of which were >$10.000/acre… a real outlier, especially considering the minimum bid was only $800/acre! Later – Buzz
Wolfcamp Shale,
Is the $20K/acre value used for a possible re-sale price or just valuing the asset on their books? The reason I ask is that I have mineral rights that are HBP. I have been offered prices in the $8K/acre range. Not that I’m thinking about selling.
Mike
Wolfcamp Shale - The well you mentioned that was spudded last month in Sec. 36, Blk 6, was it one of the Rosetta Tall Texan 36 wells that they permitted in early 2014? RRC shows four were permitted and the #4 well drilled first, completing it in 12/2014. If one those other three Rosetta permits is the well you are talking about it looks like they are in the 320 acre section that covers the east half of Section 36 and the 120 acres GLO got $11,221/acre for in the August 2015 auction was on the west half of the section. The bids show Rosetta made two $7,000/acre bids on that 120 acres but somebody called CL&F Operating LLC was the winner at the $11,221/ac.
Unless I’m looking at those locations wrong the bidders on that 120 acres were motivated by Rosetta’s completion on the other half of the section but I don’t see how they would have been almost guaranteed of having some HBP acreage. What am I missing?
Dusty, you’re correct. I was in a hurry and looking at API 38935115 which is in Section 36, Block 56 T2. However, the same logic applies. If they HBP the acreage it will be worth significantly more than what they paid for it.
Thomas, I’ll forward your property description around to some of the well funded mineral buyers I’ve worked with before. My advice would be to not sell all of your minerals, and instead sell just a fraction if you are wanting to realize a “lump sum” now.
Ann, are you looking to sell or lease?
Something else probably worth mentioning. It looks like Rosetta probably has the leasehold in adjacent Section 37, and depending on whether Rosetta has the balance of the leasehold in the W/2 of Section 36, could setup nicely for Rosetta drilling a lateral extending over two sections, with CL&F being a non-op WI owner.
WS - That makes sense, and if that $11,211 lease wasn’t just an anomaly, maybe it’s even be a stronger statement about lease values because, like Buzz pointed out, there were three different groups ready to pay over $10K an acre there gambling they could get that 120 acres into a horizontal unit.
In Toyah Lake
Section 26, Blk. C-7 PSL. 499 acres gross, 20 net.