What is the current price per acre

Texas Mineral Rights Houston County, TX
1

I received an offer of $500 per acre for a 41-75 acre tract, and a 61.3 acre tract in which I own the mineral rights in Houston County, TX. That seems low to me. Both parcels are located about 3-1/2 miles west of the town of Grapeland. I believe these are adjacent to the Dailey-Pridgen Field with Hibbard Energy as the operator/producer. What would be an acceptable offer price per acre for these two interests?

3 Likes
2

Be specific as to whether this is a lease offer or a purchase offer. A Block name, abstract name and number and section number will help narrow down the location. Knowing the activity in the area is important. Buyers usually have a reason for making an offer.

1 Like
3

In what survey(s) are your minerals located? 3.5 miles west of Grapeland is in the lease area established by Expand, formerly known as Chesapeake. They have drilled what appears to be a successful deep gas well about 10 miles west of Grapeland. What is the name of the entity that is offering you the lease? What is the royalty offer? Royalty is much more important than bonus.

1 Like
4

We are at $4,800 per NMA (Sale Price) for our section in the John Edens Survey there in Houston County.

1 Like
5

The leasing activity in far Eastern Leon Co. just north of Hwy 7 next to the Trinity River is increasing sort of rapidly. I would think an Oil Play.

1 Like
6

Hopefully they will continue south of 7. I read where Empire went into a 1957 well and drilled it out deeper to 20,000 feet for only 4.4 million. I wonder if comstock could do that with these old Alabama ferry field. Sure be cheaper than 30-40 million they pay now.

7

@ccnoot Whether $500 is low turns on the question Martha asked. As a lease bonus on unproven acreage it may be defensible, and the royalty fraction will matter far more than the bonus. As a purchase price it is a small fraction of the $4,800 per acre Mark4run reported in the John Edens Survey. Hibbard’s Dailey-Pridgen wells are small conventional production, so the interest is likely the deeper gas Alan described. Was the offer to lease or to buy, and who sent it?