Looking for information on a lease we own. Have been getting small offers, but am curious as to it’s status. I don’t think it’s producing. Haven’t been contacted about a lease agreement. The only info I have on it is: Ward Co. Hill Ut W#2U 0.000193 (decimal) XTO Energy If anyone has some details about it’s location and prospects it would be helpful in deciding whether to hold or sell. Thankyou
Moved it over to Ward County, TX so locals can answer. Any time I get offers to buy, someone knows something I don’t know and they plan to make a profit off of me. You are smart to ask questions and try to find out what is going on.
That’s a bit of an oversimplified view of mineral rights offers. Sure, everyone is in it for a profit - that’s how a capitalist society works. With tons of public resources available these days, mineral owners should never rush into a decision - as with anything else in life. However, not every mineral buyer is trying to take advantage of something the mineral owner is unaware of; the good companies are transparent and run a cash flow analysis with a certain discount factor to achieve a price they can afford. Just do some research and you can weed out the bad from the good pretty easily.
Some examples of when people likWhat about a mineral owner who wants to hedge his/her long position in the market by selling a portion of their mineral rights and investing the cash elsewhere? There are many companies who will provide fair offers right off the bat.
I kind of doubt anybody is running much of a DCF analysis for 1 NRA (.000193 decimal of a 640), but agree with the general point.
Chris, this is on the edge of the Delaware Basin. It might get some horizontal drilling here, might not. You’d think eventually things will get filled in with wells. But if prices stay at $50s/bo it might take a while. Pretty sure XTO is not drilling a horizontal well there anytime soon.
I’d expect people are offering you around $4k. For what looks like 1 NRA. I doubt there is much sneaky to it. You aren’t getting paid much of anything now, they are offering you 100s of times current cash flow, and betting on some drilling down the line. Good luck.