Unsolicited Offer - H&GN RR CO Block 4, Section 37 & 38

Hi, my family recently received in the mail an unsolicited offer to purchase mineral rights for some land that was owned by a relative.

We were offered $4500/acre. The land is located in the H&GN RR CO Block 4, Sections 37 & 38.

Does anyone know the comps for the area, or any information that may help in deciding how to move forward with this unexpected offer?

NO DO NOT ACCEPT Most people are getting 10K nma for Leasing Bonuses (3 year leases)

Plus, you should always use an oil and gas attorney for leases or sales. With this region rivaling Saudi Arabia in oil production, why would you sell?

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I agree with Brenda. If possible you need to hold on to those minerals. As of this month(March 2019) Carrizo Permian has 5 approved permits for horizontal wells(38193, 220, 221, 228, 237)for Section 38. There are some very impressive gas wells with condensate in this area…also some good oil wells.

Link to permit for well 38237…


Link to production data on gas well 36876…WOW…


GIS map of Reeves County Section 37 & Section 38/Block 4:


Clint Liles


What river is that green wavy line?



I believe it is the Pecos River, which also separates the Reeves & Ward counties. That is one other piece of information - in this offer, the tracts are specified as WATER tracts. Does this change anything?

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Water Tracts refers to an old irrigation land map filed in Reeves County. In most cases it took full sections in and around the pecos and barstow area and subdivided them into smaller parcels in a grid format. So your legal description could refer to 40 acre water tracts. It doesnt really change anything as far as what you should receive bonus or royalty wise, it does however likely mean you dont own an undivided interest into the whole section.

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I was just looking at the flow of the Pecos river and thought it might be close to my property in Section 19 block 7 which is close to Pecos, Tx.

Good luck.


Thank you for your help Clint! I was able to roughly identify where our land is located, but had no idea you could see the activity of nearby gas wells! I apologize for the naivety, but how does that production data compare to the ‘average’? I’m just curious what type of expectations we should be setting ourselves.

Kyle, there are some ‘FANTASTIC’ wells in this area of Reeves County.

Clint Liles

Sounds like a pretty low price they offered, any idea how many acres it’s for? Did they specify net mineral acre vs net royalty acre?

Net mineral acres. The offer ended up being about 3% of the gross acreage listed in the 3 tracts that were specified in the offer. That’s where I’m confused why it seems they have access to all the land, but only pay for a proportion of the gross.

The mineral rights were likely severed from the surface ownership. So, even if there is one (or a few) surface owners covering, let’s say, an 80-acre tract, there could be 100+ mineral owners who act as tenants in common under the 80 acres. Sounds like your family owns 3% of the minerals under certain tracts, and that means there are other mineral owners entitled to the remaining 97%.

We are very hopeful that something similar happens to us as well! We contacted a local landman yesterday who gave us some information. In order for us to proceed, he said we need to pay a $1000 retainer for him to do a title search through the Permian Basin records. Is this a typical/smart route?

He was not sure how long it would take to find enough information to decide whether our title is clear. It appears to just be a retainer fee and could be applied to additional work he would perform if it took him less time. I was really more curious if anyone else has worked with a landman before when attempting to verify the heirs entitlements to the property.

The landman we have looking after our interests charges us $35.00 per hour for lease negotiations, division orders and other sundry oil and gas affairs. She lives near Dalllas and probably can’t help you in Reeves County. I’d shop around, a 1K “retainer” seems a little steep to me…

This was a helpful discussion thanks about landman functions and price.

Reeves has good online resources available for landman to work remotely 95% of the time.

to purchase minerals, that is very low. Are you burdened by NPRI’s or is this mineral classified land?


 I believe you are "spot on" about the retainer.  However, you should make that clear with the landsman in documented fashion.