Value of mineral rights section 24, block 77, PSL?

Received an offer from Patch Energy to purchase our rights......anyone know what an acre is going for in this area?

Any info is appreciated....we are newcomers to mineral rights

All I can tell is that this area are five old oil wells in the south half that have been plugged so your mineral aren't producing.

can someone send me the link so I can researched details of my mineral mineral rights owner


Here are the links to the Tx RRC - the best free site available to research what is happening in your area. I suggest you go to the GIS site (map option) and find your area - then see what sort of activity may be happening around your area.

I will tell you that this site is not easy to use - especially for novices.

There are other sites that are much easier to use for research but they are all "fee" sites and pretty expensive.

Attached are two PDF's from site. One shows all historical production Block 77. The other shows a zoom to section 24 in that block.

All the old production is mostly from the shallow (less than 5000') San Andres interval. This old field is called Keystone Field.

There have been no new well permits of any kind in Block 77 over the past 1000 days - seems to not be in the area of active industry activity.

756-HistoricalProductionBlock77.pdf (562 KB) 757-Section24Block77HistoricalProduction_Edgeofoldoilfield.pdf (1.73 MB)

I'd like to add a point on mineral rights offers based on my own personal experience.

I have a small (0.5%) overriding royalty interest in a productive unit in the S Tx Eagle Ford trend. Three Eagle Ford wells have generated close to $80,000 in revenue to me as to this interest over the past 4 years. These wells are only making about 75 BO and 250 MCF per day as of last month.

There is room for anywhere from 3 to 10 additional horizontal wells depending on operator concepts and ideas (as well as economics for new well drilling). I have no idea when these new wells could be drilled.

Over the past year, I have received over a dozen unsolicited offers to purchase these minerals - the offers have ranged from $7400 to over $120,000.

I just counted up all the offers that I have received in 4 years - over 35.

I haven't sold and will never sell, but this example says a lot about the whole mineral rights valuation and offer situation.


Thanks for sharing.....good perspective on value that is possible

Any mineral buyer will be trying to buy as low as possible and take advantage of mineral owners who are not "O&G savvy" as well as those who may be desperate for a big check now versus long drawn out payments over many years.

Also always need to be aware of tax ramifications of selling minerals - recommend talking to a good CPA who understands O&G issues to understand Uncle Sam's impact on mineral interest sale.

Right now, it appears that your area is NOT in the hot part of the Permian Basin, i.e. it appears to be up on the Central Basin Platform and not in the Delaware Basin area (located farther to the west).

Oasis Petroleum just announced a deal where they acquired about 20,000 mineral acres from Forge Energy for almost $1 Billion - or about $50,000 per net mineral acre (which are probably 75% NRI leases). However, this is a much different area than yours.

It is all about location and what the subsurface looks like - and the subsurface can change quickly over a few miles in the Permian

Received offers from $2000 - $10,000 per net mineral acre.