I was wondering what's the latest news in Culberson County? I heard that there are ten ( 10 ) rigs up and running.Anyone know their location or exactly what is going on?
Steve, owner of 21.54 AC in Section 46.
I would love to sell my land acreage in the county. Full mineral rights on 5AC. Is it worth selling the land, the rights, or leasing, and wht sort of money can I expect?
Steven,
What is the Abstract # of your 5 Acres/minerals? Location can make a difference in price of selling or buying.
Clint Liles
5.33 ac survey34 block59 Does that help?
I'm aging and unwell and have been approached by several (4) interested parties with quite different sums of money in mind!
Steven,
Every time I try pulling this up on RR Commission GIS map I get the Message: 'NO SURVEY RECORDS MATCHED' I need an Abstract #, Block # and Section #.
http://gis2.rrc.state.tx.us/public/startit.htm
Clint Liles
ste west said:
5.33 ac survey34 block59 Does that help?
I'm aging and unwell and have been approached by several (4) interested parties with quite different sums of money in mind!
e1/2,se1/4,sw1/4 of section 34 cert#3547 block 59, Township 1T & P RWY survey
Does that make sense?
Steve, what Block are you in?
Hi, I'm a newbie to the forum. I have about 50 acres in 2327, Blk 82, Sec. 24. I looked that up at the GIS site and it shows an entry in that block. Can anyone tell me what that means? Thanks and good luck to all!
Lol, nothing like a totally hijacked thread!
I think that 'Steven Harrison' & 'ste west' are two different people with different questions.
I have 21.5 acres in Culberson County which is Oil and Gas Lease to Cimarex, I own 1/2 the mineral rights on E/2 NE/4 NE/4, Section 46, Block 59, T-1, Culberson County, Texas. This lease was signed in May of 2011, and is a 5 year lease. Even with having already signed a lease, I am still getting offers to buy me out of this, or even sign another lease. My most recent offer is from Texas Shale Leasing out of Dallas, and is a check enclosed with a lease agreement (showed up in my home mail) stating if I simply sign and notorize the document, then the 52,500.00 check is mine to deposit. I am not crazy enough to do this, but would like some feedback from others. First of all, how can this offer over write my existing lease which still has nearly 2 years left on the 5 year agreement? Have others had the same type offers? I have had some offers over 60K to buy me out of my mineral rights, but this is a new lease and offers 25% royalty to go along with it. Most important....What is the present status of this area???? I know I see stuff from Clint Liles when new permits are put in place, but I do not have any info which directly relates to the area around my property. Can anyone please provide me some ideas of how to properly deal with these offers and status of the area. What kind of returns could one hope for if a well was put in place and I have 25% royalty (from my initial lease already in place) on 50% of 21.5 acres, or 100% of 10.75 acres worth of mineral rights? In other words it is tempting to sell out, but what could I possibly hope for if I hold out? Help please!!!
Eugene - From your legal description above I think you are in a very good area. There are Cimarex permits all around the tract you describe and some very good producing Cimarex wells within a few miles of you. This is why you are getting so many offers to top lease or sell your rights completely. 25% royalty is great and adds even more value to your minerals. Your decimal on a 640-acre pooling would be about .0042. On one well just to the south of you that would have generated somewhere around $30,000 in under two years. There will be more wells in the future, too.
Eugene,
after checking the GIS map of your Sec 46, Blk 59 T1, I see some Horizontal wells have been drilled next door to the west and to the east in Sec 45 and Sec 46. API # 109-32581 in Sec 47. No completion report found. But in Sec 45 API # 109-32611is a great gas well. Completion Report stated 3,697,000 MCF per day. With the new Natural Gas Export Facilities being built in Cameron Parish, La. and other locations in La. and Texas I can see why so much interest in purchasing your minerals. I say no to selling your minerals. This link is the Completion Report on 109-32611:
GIS Map of Culberson County Sec 46, Blk 59 T1 and surrounding area:
Clint Liles
Eugene C Flaute Jr said:
I have 21.5 acres in Culberson County which is Oil and Gas Lease to Cimarex, I own 1/2 the mineral rights on E/2 NE/4 NE/4, Section 46, Block 59, T-1, Culberson County, Texas. This lease was signed in May of 2011, and is a 5 year lease. Even with having already signed a lease, I am still getting offers to buy me out of this, or even sign another lease. My most recent offer is from Texas Shale Leasing out of Dallas, and is a check enclosed with a lease agreement (showed up in my home mail) stating if I simply sign and notorize the document, then the 52,500.00 check is mine to deposit. I am not crazy enough to do this, but would like some feedback from others. First of all, how can this offer over write my existing lease which still has nearly 2 years left on the 5 year agreement? Have others had the same type offers? I have had some offers over 60K to buy me out of my mineral rights, but this is a new lease and offers 25% royalty to go along with it. Most important....What is the present status of this area???? I know I see stuff from Clint Liles when new permits are put in place, but I do not have any info which directly relates to the area around my property. Can anyone please provide me some ideas of how to properly deal with these offers and status of the area. What kind of returns could one hope for if a well was put in place and I have 25% royalty (from my initial lease already in place) on 50% of 21.5 acres, or 100% of 10.75 acres worth of mineral rights? In other words it is tempting to sell out, but what could I possibly hope for if I hold out? Help please!!!
Hi Clint:
I see you found paper on the gas well that is doing great, noted above. When I look for that same well in the proration reports (data base), I don't find anything. I was able to find the permit. What's the story on reporting by operators?
Thanx everyone for your prompt feedback. I will hold out as I have been doing, so the opinions provided confirmed my thoughts. I do have a few last questions. Marcus T mentioned the pooling percentage of .0042 on the 640 acre section. Is this how it works, or otherwords if a well goes up in any part of section 46, then I should see royalties from this eventually, or is it more envolved than this? Where approx is my property? Can you give me a break down of what the E/2 NE/4 NE/4 is? I am guessing the East 1/2, in the NorthEast corner, and in the Northeast corner of section 46 block 59, so this is the upper NorthEast corner and very near well 1H 32581 in section 47. If this is the case, then what keeps this well from drawing out from underneath me? I am just making sure I understand correctly how all this works. On the map above showing this well, what is the vertical line drawn heading straight South out of this well and out of this section and all the way acrooss section 2 below it? Is this a horizontal well and this is where it is drawing from? If so, it appears all of the wells surrounding section 46 are ran around the borders to draw as much as possible from the section, but without legally crossing into the section, thus avoiding royalties somewhat. Am I heading down the right path with my thoughts or out of perspective? Whator who would be the best contact or resource to see what plans Cimarex may have in my section? Any help and understanding is greatly appreciated. I am still learning, but much wiser than I was when I was first introduced to all of this about 4 years ago. Conversations such as this are a wealth of knowledge!!!
I mentioned I have 1/2 mineral rights on 21.5 surface acres I own. How is the pooling percentage calculated? How did Marcus T get the value of .0042? If there was a well located in section 46 which would have generated $30,000.00 in 2 years, then if eventually there were 3 wells anywhere within section 46 which were producing strong as mentioned above, then I would draw royalties from each well and in the example above would be 90,000.00 over a couple years? Once again I am just making sure my thoughts are in order.
I see this is showing natural gas wells in the area, are there other wells for oil, or different depths which these wells may eventually be used for? Some reading on the internet a while back stated this area may be the largest pool in the world because it has so many different levels of minerals. Can someone explain how or if these various levels are being utilized, or possibly regulations which are limiting utilization, etc. Wondering mind, curious again! Thanx All!!!
Hi Eugene,
I arrived at your decimal by taking 10.75 (your net mineral acres) divided by 640 acres in a unit (could be different - I'll explain later) multiplied by .25 (your royalty percentage per your lease). Generally, under any pooling you are paid royalties on your proportion of your acres to the total acres in the pooling. I say "generally" because there are situations where others own some of the royalty on your minerals but that doesn't seem applicable here. This means that you will share in the production from all wells drilled within that pooling at that decimal so, yes, you would get royalties off all wells drilled in section 46 if that section was pooled together. Cimarex has drilled some 2 section poolings near you so you could get your interest more diluted if that happened with your section. Anyhow, to roughly figure your royalty you multiply your decimal by oil/gas price and multiply that by barrels or mcf produced. There are multiple target formations in your neck of the woods (northeast Culberson county) and the E/2 NE/4 NE/4 of your tract description means that your minerals are in the east half of the northeast quarter of the northeast quarter of section 46.
Concerning the timing of future wells, oil companies hardly ever disclose their plans to anyone, not even mineral owners. Usually your only way to know about new wells is to track permits filed with the Texas Railroad Commission using their online database. My best guess is that Cimarex is not going to let your lease expire without drilling a well on it because that is key acreage for them. They are very big on their Culberson acreage in their presentations (best place to get an idea of what they have planned for your section) and the production of the wells around you shows why. Many wells produce over 1 billion cubic feet of gas and over 100,000 barrels of oil in less than 3 years. And that doesn't include natural gas liquids that can't be found on TX RRC production reports. All of this is why Clint Liles and I recommended against selling your interest unless absolutely necessary.
Also, you don't really need to worry about those surrounding wells draining your minerals without getting royalties. That rock from which they're producing the oil and gas is about as free-flowing as a cement parking lot surface. Cimarex is working on putting their wells 660 feet apart and hints at trying them closer than that in the future because they drain such a limited area around the wellbore. There could be some effect, but from what I've read and heard from engineers it's pretty insignificant.
Hope this helps.
Marcus T, thanx much for this very thorough explanation!!!! I have one more question concerning this property and my mineral rights. As I mentioned a couple days ago, I have had many offers over the last year to purchase my mineral rights, and because of this I assumed the recent offer was along the same. After paying attention instead of just glancing over, I found mt recent offer is a mineral lease at 5k an acre and at 25% royalty, which is a great offer. I am still in a lease with Cimarex for about 2 more years at the moment.................I was interupted by a phone call from this leasing company and now understand better. They are offering me 5k an acre to lease my ROYALTY of 25% I have with Cimarex, and then pay me a 25% portion back from this if it produces. So effectively instead of getting 25% from Cimarex, I would be getting 25% of that, or 6.25%, and they would get 18.75%, but I would get a check up front of 52,500.00. So they are leasing the royalty, not the minerals, but really is a way of them getting 75% of my royalty agreement with Cimarex. I have requseted a return offer which would split the minerals 50% each, and a good price per acre for this. One other catch is it is a 3 year lease or if in production will continue on. I would rather see a fixed term regardless of in production or not. We will see how the offer is returned. Have you seen much of these kind of offers in the past?
Yes I have and I probably know what company it is offering that. Here's the simple deal: Cimarex is almost certainly going to pool and drill your acreage in the next two years so by adding that "or as long as production continues thereafter" clause they are effectively getting that royalty forever because those wells and future ones will produce for decades. If you choose to go that route just realize that you are giving that up forever. If you set a truly limited term then expect the price per acre to go down considerably because that will give them a limited time to collect royalty and there's no guarantee there will be multiple wells for years to come.
I realize what you are saying and unless something really major was to happen in life, I will not sell out of anything. Thanx for all the great feedback!!!!