Section 202, Block 34

Anyone received offers to purchase mineral rights in Section 202?

Is $18,000 per mineral acre for Section 202 a fair price in the current market (May, 2017)?


What county and state?

Ward County, Texas......

That section is probably going to get drilled by Concho or Anadarko within the next 2-3 years. Both are well-regarded operators, and Concho has a development plan that involves drilling multiple wells per section a few miles to the southeast of your section.

It looks like the 3 year primary term of your lease is about to expire, and your lease allows for a 2 year optional extension of the primary term. If Concho somehow misses the extension payment, you'll be able sell the minerals for much more than $18k/ac. (not to mention lease them for a significant bonus price)

As far as what a fair price may be, there are many variables. A drilling permit on the property would raise the offers above $18k/ac, and your lease extension payment being missed would do the same. You could try contacting the forum sponsors to see what type of prices they're witnessing in your area for different acreage packages, but I probably wouldn't sell, or at the very least, wouldn't sell until I saw whether Concho missed the extension payment.

Best of luck!

After checking production from several wells in the surrounding area of Section 202 I find production coming from at least 4 different formations(Delaware, Bone Springs, Wolfcamp, and Wolfbone). Definitely a good area to have minerals.

Clint Liles


The risk of finding and producing oil from Section 202 is extremely low. Whomever owns your minerals is destined for a very nice royalty stream. It is just difficult to say when it may start so be patient. I don't think the offer price repress fair market value for a buyer who wants to to participate in the area for the long term. Payment of the lease extension bonus described by Wolfcamp Shale is highly probable. Being patient will reap high rewards for you.

Gary L Hutchinson