Section 313, Block 13 Mercedes Unit, Reeves County


#1

I am trying to find out what royalties are going for in this area. Don’t know whether to lease or sell royalties, if so for how much? Any advise would be greatly appreciated.


#2

Leased section 270/271 block 13 for 10k an acre to Rosetta/Noble early last year.


#3

Leased Section 271 block 13 for 12K an acre October 2018


#4

Section 270 and 271 are miles to the north of you in a more active area. I do not know what you should get for a lease but I wouldn’t expect to get as much for your section. That said, unless you need immediate moneys, it is usually better to lease than to sell. Leases can lead to wells, which can produce income for years. A sale is a one-time thing. Best luck!


#5

Thanks for posting about this. Just joined this forum and very curious about Reeves County as well. My experience is that you want to always lease before you sell. I think you get better value if you sell once you have leased and there is a well on your property.