Sales of mineral rights

We own 1/3 of a 40 acre parcel in Reeves County. In January of the year we entered a 3 year lease with Centennial, retaining a 25% interest in production. They have not drilled at this time. We are thinking of selling our 1/3 interest. We recently received an unsolicited

offer of $12500 per acre.I'm thinking that is well on the low side. Any thoughts?

John O'Neil

Hi, John -

It depends upon where your lands are located in Reeves County but, yes, that sounds a little low.

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

John - I found a past post where you mentioned your tract description. $12,500/nma is quite low for that area. It is in Section 6, Blk 50 T7S, right?

yes

Based on what we are seeing it is low

We had 100 acres in Reeves; Blk 4 Sec 31 - we had a few 3-yr leases. We just sold for 36k per acre two months ago. So - you should get more then 12,5, again depending on where …

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.