Hi everyone, My parents leased years ago to Endeavor Energy—E/2 S34, Block 35-4N T & P RR survey. The Theodore Davis #1 well has glugged along forever. This year all at once I am getting big offers to purchase [no plans to sell] the mineral interests. To me this means someone knows something. Any of you have any ideas? Curious!
There is nothing obvious going on there IMO. It’s still fringey Wolfcamp acreage. Well in adjacent unit (Chocolate Lab) isn’t bad. It’s harder and harder to find Midland Basin minerals that somebody might drill so I’d guess people are getting more and more speculative on the fringes.
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I’m actually the opposite, I have some acreage not too far away that I am tired of waiting for it to be developed. I haven’t gotten any offers that motivated me to sell yet, but am looking. Do you mind sharing who offered you? I might reach out.
Hi,
Sorry I am slow to reply. For Dawson County - Theodore Davis well/area
8/13/23: Dune Energy $1750/a was highest. Also,
Community Minerals,
RobRoy LLC Fairmount
Good Luck!
Hello blakemoores,
Do the offers state how many acres you own? I would be curious to know prices in this area as I own mineral rights on several other lands in Dawson County. Also, are all the offers you described recent from this year?
Hi,
The area offers are for the Theodore Davis well area of Dawson County, Texas.
- 7/23 was $1750/a. ~ 23.5 a. was the best
- 2/23 ~ $1700/a. RobRoy Resources
- 2/20; Fairmount Land & Mineral
- Community minerals just a general solicitation
- 8/23 Kane Resources a general
Did they mention if those prices were per net mineral acre generally or did they get specific about lease rates? In the past with our acres, buyers have said they’d pay more for higher royalty rate minerals. My son has always said to go for the biggest royalty when leasing to landmen so that when they drill (or if we ever sell) they’ll be worth more.
Hi, I am in the middle of traveling so I do not have my records with me. My prior responses contained my summary of the letter offers. Very basic. It appeared they want to buy my mineral interest that contains the Theodore Davis well. Price was per acre. They did not mention net mineral acre (but I bet that’s what they really mean). The well is still active by Endeavor. Just seems odd that all of a sudden there is interest. Makes me think someone knows something. It is in the Permian area.
- redo the well?
- deeper or horizontal well?
- add wells to nearby lease included acres? Just curious.
I agree with the highest royalty plus no deductions, etc.
You’ve got horizontal wells spanning your acreage if you are in Section 34, Block 34, Township 3 North.
Hi again,
I looked up the deed: [I do not have my parent’s lease]
- E/2 Section 34, Block 35, Township 4 N The Endeavor Energy division order from 2014 states:
- 550’ FNL & 500’ FEL Section 34 Block 35, Township 4N T & P RR. Today I received a D.O. from Pinon Operating (they must be replacing Endeavor Energy) which states:
- NE/4 Section 34, Block 35 Township 4N. Is that the same description? The R.I. listed was the same.
Now I’m curious why I’ve been getting offers to buy the M.I.'s at a time when Endeavor, which has been the operator for years, is giving up their position?
This link will open the Railroad Commission’s Map Viewer on Pinon’s horizontal well drilled in Section 33, approximately one mile west of your acreage. Said horizontal well produced almost 313,000 barrels of oil September 2020 through July 2023. It looks like Pinon took over the wells in Section 34 from Endeavor. Maybe Pinon will be drilling a horizontal well which includes your minerals? It looks like your wells have produced approximately 1,700 barrels of oil September 2020-July 2023. See why someone might be interested in buying your minerals?
I see that, thanks so much for taking the time to put that together! It really gives me a new way to think of these things. Here’s hoping…
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