I recently acquired 640nma of minerals in Washington County, Co. Does anyone buy minerals in this area? Alternatively, can someone point me towards people that buy in this area and can fill me in on what, if anything, is going on in the area. Thanks in advance.
Hi, Joel -
I can maybe tell you a little about what is going on in your area, but I will need the legal description(s) in order to locate the lands on a map.
Accept my offer to become a friend on The Forum and you can send the legals privately that way.
I normally caution people about selling their minerals, but if you want I'll send you the name of a company in Denver that buys minerals all over the country.
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Hi Joel,
In terms of activity in Washington County, it looks like Grand Mesa Operating and Apollo Operating have active well permits in the county. I'm not too familiar with these operators so I'm not sure how it might fit into their overall exploration strategy. You can do some research on the Colorado Oil and Gas Conservation Commission website and locate where the activity is relative to your minerals via their GIS (mapping) interface.
From what I've seen there are mostly vertical wildcat exploration wells that are being drilled and targeting any number of formations. It seems that operators who have had success to the South are targeting specific structures that they identify using seismic data so actual activity level and success is very localized and dependent on a structural trap being present (more of a conventional oil and gas play vs. basin-wide play like we see in Weld County for the Codell/Niobrara formations).
The specific location will determine how much interest there is and the going rate for leasing or buying minerals. I'd echo what Charles says and say to hold on to them unless you need the money now or unless you have a specific goal like simplifying inheritance. I know folks that are buying mostly further North but that might be interested if you do decide to sell all or a portion.
Whatever you decide, I'd highly recommend getting an independent appraisal or at minimum shopping around for multiple offers given the number of acres you have (e.g. soliciting offers from trustworthy buyers and marketing your property on sites like EnergyNet (I've used them so I can recommend their services) or US Mineral Exchange (I have not used them so don't have any experience good or bad). Spending a few $ now to fully understand the potential value (both producing and non-producing) of your minerals could mean the difference in tens or hundreds of thousands of additional dollars in your pocket should you decide to sell.
Hope this helps,
Matt Sands
Joel -
Attached is a map of your area with Wells shown on it and an aerial photo of the area (your lands are outlined in blue).
It would take more research to tell you how deep the Wells are and when they were drilled, etc. But there does not appear to be any presently producing Wells anywhere near your land or any Drilling activities. Just about a dozen Plugged and Abandoned Gas Wells and maybe double that in Dry Holes.
You can call Christopher Dykes at Family Tree Corporation in Denver and see if he would be interested in buying your minerals, but if he is I wouldn't expect too much of an offer.
Wish I had better news -
Charles
461-MAPOFAREAWELLS.pdf (47.9 KB) 462-GOOGLEEARTHwSECTIONS.pdf (149 KB)Thank you for the info!
Thanks, I will take a look at the maps. Appreciate the help.