Section 27, Block C-2


#1

I am new to this group and new to valuing mineral interests. I am trying to determine the selling value of 6.25 net royalty acres in Pecos County (Edith MacIlvain). Operator is McClure Oil Company. I have received a number of offers in the mail at varying amounts. The offer amounts varied from $24,000 to $50,000.


#2

Sometimes what the offer is to buy is less than what you may get just to lease it out for say 3 years. These folks alot of times are just buying to resell or to get in on the lease payout and profit from your willingness to get cash. I have no information in reference to your situation but if there is a probability of oil on your spot from my personal experience it maybe better for you just to lease it instead of outright sale.


#3

Did you inherit the minerals recently and need to update ownership? There does not appear to be a “Leslie Myers” listed as in-pay per the 2018 year records.

Nonetheless, you can likely get closer to $62,500 ($10,000/NRA) if you find the right buyer. I know of a few who purchase minerals in that area and have seen them pay $9,000-$13,000/NRA depending on the exact acreage and drilling situation.


#4

Unfortunately being under McClure is not good for you. Unlike Diamondback or Patriot or Jagged Peak or XTO, they won’t be drilling any horizontal wells anytime soon. So for that exact acreage and drilling situation, $50k for the lot is a pretty good offer. IMO.


#5

NMoilboy, any insight as to why McClure is just sitting on acreage? Are they gathering HBP properties to sell to another operator, and as such have no interest in developing minerals for cash flow themselves in the meantime?


#6

I don’t know anything about Mcclure. Other than they have two isolated sections (this one and 48-8 sec 5) where they appear to be content with just vertical Delaware production.

My guess is that all the surrounding stuff is going to get “Tetris’d” into 1280 acre units and those are gonna get stranded.


#7

TwoShoe, Can you share with me the firm names that are paying the prices you noted? Thanks.


#9

Would you like further assistance with cursory research?