Section 13, Block C21, PSL, Reeves County, TX

[Lexie_Jones]

I have been given an offer for my property at the above legal description. I do not live in TX. What would be an estimate for one acre?

Thank you for your help.

LJ

[NMoilboy]

It depends on what you are talking about.

• Is your acre leased? If so at what royalty rate?

• Which part of Sec 13 is it in? Legal description, abstract, etc. There are at least 6 parts of Sec 13 with differences.

• If it is not leased, are they talking about buying it all outright or leasing it?

[Lexie_Jones]

Hi, The legal they gave me is Sec 13, Block C21, PSL, Reeves Co., TX. The property must have a well on it because it says "Harpoon, #1401 BH, with operator as Resolute Nature valued at $0 which I don’t understand. Also Harpoon #L 05H, some operator, valued at $6,373. They are wanting to purchase the mineral rights.

[NMoilboy]

Ok. Those are two existing wells. They are both producing. They are both dedicated to the same acreage. You should be getting paid by Resolute or Cimarex or Coterra. A few hundred a month. All the same company for your purposes.

I could be wrong. It looks to me like you have something like 2.22 net royalty acres (1.11 mineral acres leased at 25%).

There…on that skinny unit with 2 existing wells (which makes it tougher to get more Wolfcamp drilled), I’d say an estimate of the value of your (slightly more than) one mineral acre is $20-25k. Amateur opinion.