Should I sell in Harrison County Texas?

Oil and Gas Leasing Help
1

I own some mineral interest in Survey 15, 501, 799 total 647 acres. Could anybody tell me if I should sell the interest or hang on to it?

Thanks for your help.

2

Jerry:

Can you give a better description of the area where these minerals are located? I am very familiar with Harrison County and will most likely know the area covered in these surveys. Harrison County is very large, as you know, and it is comprised of both oil and gas well production. Part of the county participates in the Haynesville Shale play which is the more recent major activity. The TX/LA border consists of older oil production as does other areas of the county. Also, older gas fields such as the Woodlawn and Blocker exist around the Marshall area.

To answer your question about selling these minerals, that decision is completely up to you. I have never been in favor of selling minerals but each individual has their own financial situation and you must do what’s best for you. Seeing that this county has had a long history of both oil and gas production, if you decide to sell, do your homework and know what has been drilled or is scheduled to be drilled around your area. Learn the nearest wells to your area and what production they have had over the last several years. You can get this information from the Railroad Commission of Texas website.

In conclusion, don’t be in a hurry to make a decision either way until you know the area and its future potential.

3

Hi Charles,

The property is located in Marshall east area around Scottsville area. Last year GMX RESOURCES INC. drilled some wells next to me. Here is one of their Api# 203-34870. I am having to sell it because of health reasons.

Thanks for your help.

4

Jerry:

Sorry to hear about your health problems. Your minerals are in an active area of Harrison County as there has been a history of drilling in all directions from the Scottville area. You need to market these minerals on a local basis by contacting GMX and other operators in the area. BP Amoco has an office located in the Hallsville area and some of their field gurus might be able to assist you in this matter. There are also websites for advertising your minerals such as “Mineral Hub” but some charge a fee for advertising. Your first option should be to market locally by talking to various operators in the area before venturing to other means.

5

Charles,

Thanks for your help. I just wonder what I could sell them for. Do you have any idea, maybe?

6

Jerry,

Unless you need to sell all to get the amount of money you need, I would only sell half, especially if you own 647 acres of minerals (not certain how many net you had). If you sell half you will still participate in any upside potential but it also provides a hedge against downside like if they never lease/drill or oil prices fall back to 2002 or even 2008 levels of below $30 a barrel. It also may be enough for your medical needs.

7

Jerry:

I’m sorry but I can’t help you in regards to the value of these minerals. If you will click on “Groups” at the top of this page, go to “County Groups”; go to “Texas”; then scroll down to Harrison County. Post this question on that site as these are individuals who have an interest in Harrison County. Mineral Joe does have a good point in regards to selling only part of your mineral holdings, especially if you get a good price per acre as this might be enough to suffice your financial needs. You can always go back later and sell more. Good luck!

8

Thanks everybody for your input.

9

647 acres is a HUGE chunk of minerals. Please, please, please get some help getting a thorough evaluation before making any SELL decision. Value could be $30/acre or $3000/acre. See what I mean?

Mineral Joe is exactly right. But get a valuation from multiple sources, and get help from an oil-gas attorney to make sure you don’t get taken advantage of.

10

oldoak

Back in 2009 during my health problems I was offered 10k to lease my mineral right, I just could not even think about doing anything except getting well. I only own 25% of the mineral rights to these tracts that have never been drilled on. For some reason the oil companies have been after this property for years, but my family would not lease it to them.

I hope someone would shed some light, to tell me if there is any oil on this property.

11

Looks like that GMX well you mentioned is a gas well, in the ‘CARTHAGE, NORTH (BOSSIER SHALE)’ producing zone. I didn’t research production - probably wouldn’t be hard to find out.

Unfortunately, dry gas is down right now, so unless this area produces liquids, or massive amounts of gas, you probably won’t get as much currently, since gas is in over-supply. But be careful because there might be oil or liquids at different intervals, and selling your royalty would mean you forfeit forever any found in future, even at deeper depths.