hello, everyone. I have an undivided interest in a complete section in Block D; 160 acres net mineral acres. it has about 2.5 years remaining on a lease, 1/5 Royalty. No production or permits at this time. I am considering selling and wondering if anyone has an idea what the sale value of this might be per net acre... or even how to go about figuring out the value? Thanks!
L J L,
Welcome to Mineral Rights Forum.
A complete legal description will be needed before anyone will be able to help you. As far as I know Block D covers practically all of Yoakum County. So the exact location can make possibly a great difference in the value of your minerals acreage. Also, if there is activity in the area or producing wells nearby can make a difference in the value.
My family has non-producing acreage in Yoakum County, and two years ago we were offered $1500 per net mineral acre to sell our interests. Since then we have leased it out at $300 per acre, but maybe we should have accepted the outright sale price at the time.
We got an offer of $2000/net mineral acre back in November of 2015. The offer was for minerals in the N/2 of a section where we own minerals in the S/2 only. The minerals in the S/2 were leased for $200/nma in late 2015.
We never sell minerals, but this gives you an idea of prices in the SW corner of Yoakum County.
thanks, Clint... it is Section 119... A-123, that's up in the northwest corner of the county. Is that enough to go on? Appreciate the help!
L J L,
The latest activity I see in the area was a Horizontal Well that was drilled Sept. 2004 in A-116 next door to the N/E of your A-123. This well(API 501-35027) was drilled into the Devonian Formation. The well was permitted to 12,300'.
This link is to the latest production data for this well.
Looks like it has about pooped out after producing for about 12 years. I looked for a Completion Report on this well and couldn't find one. I will check later and see if I can find some older production figures to give you. There definitely is production in the area. There are numerous plugged oil wells to the East and N/E of your minerals.
GIS Map of Yoakum County A-123/Section 119 and surrounding area:
Thanks, Clint! That was all definitely helpful!
Thanks, Steven! do you know how many acres did you have? What part of Yoakum county? Just wondered if it is near mine... which is near the N/W corner. I'm asking myself the same question. Lee
Thanks, GD... very helpful. When you say that you never sell, do you mean that you just don't want to sell ever or that you haven't so far? Is it because you think values could go way higher?
Our acreage is 6 mi NE of Plains. I personally have 92 net mineral acres, but my family has about 830 net mineral acres.
cool! thanks, Steven.
I say "never sell minerals" because I think you never know what technology may come along to be able to produce oil and gas from our minerals. Part of my thinking is from experience. 50 years ago my uncles were selling my grandfathers farm in Hardeman County. They thought the minerals should with the land but they were forced to at least keep a term royalty (20 years). Sure enough, 18 years after the land sale, production was established and the wells have produced 1,131,080 bbls of oil to date.
Our minerals in Yoakum County date back to the early 1900's. The minerals have been leased twice, that I know, of during my 56 years. The SW corner of the county has not had much activity over the last 100 years, until recently. Everyone's situation is different, but I just can't see selling minerals for an amount that might end up being close to the amount lease prices could be in an area that gets hot. I've also been the Oil and Gas business for 36 years and have seen the changes in technology as well as the ups and downs in prices. Hope this helps!
thanks again, GD... this was very helpful.