Hello-I'm new to the forum and also a rookie when it comes to mineral leasing. A few years ago, I inherited a parcel of land(40 acres) six miles Southeast of Imperial, Texas(Section 23, Block 2, H&TC RR survey) and I've recently received an offer of $150/acre and 20% royalty interest from a company out of the Dallas area. I was wondering if anyone could offer any advice on what I should do...do these figures represent the going price currently in this area of Pecos County? Any help would be most appreciated. Thank you.
Dear Ed,
Pecos County has a wide range of prices depending on where you are and who is doing the offering. Probably the county average is around $700 per acre. High end is in the thousands per acre. Low end is around $300 per acre. Wide royalty ranges as well. I have done some recent and ongoing research in Pecos county for a client.
Buddy Cotten said:
Dear Ed,
Pecos County has a wide range of prices depending on where you are and who is doing the offering. Probably the county average is around $700 per acre. High end is in the thousands per acre. Low end is around $300 per acre. Wide royalty ranges as well. I have done some recent and ongoing research in Pecos county for a client.
Best,
Ed B said:
Buddy Cotten said:Dear Ed,
Pecos County has a wide range of prices depending on where you are and who is doing the offering. Probably the county average is around $700 per acre. High end is in the thousands per acre. Low end is around $300 per acre. Wide royalty ranges as well. I have done some recent and ongoing research in Pecos county for a client.
Best,
Hello Buddy,
Thanks so much for responding to my post. According to the prices you've shared with me, it seems I'm certainly getting a low-ball figure for this Pecos County land. Should I seek another offer elsewhere...and how does one go about soliciting other offers? I was told by the agent, who gave me the offer, that Burnett Oil was the company interested in leasing land in the area. Is there any way of finding out if this true? Any more insights would be most welcome.
Thanks again,
Ed
Thanks for responding Pete, I don't think it would be appropriate to mention the name on a public forum such as this but I could tell you via personal email if you'd like...
Pete Wrench said:
Would you care to mention the Lessee, the company offering to lease your minerals? I have become aware of a few extremely sleazy Operators in the Dallas area within the last two years, and would want to steer you away from those if possible.
Too low. Buddy is accurate. There is a video on the Home page of this site which shows you how to check surrounding activity on the RRC website.
Thanks for the heads up on the tutorial video, it was very informative.
Wade Caldwell said:
Too low. Buddy is accurate. There is a video on the Home page of this site which shows you how to check surrounding activity on the RRC website.
Thanks Pete. So, I was certainly given a low figure...what should I do now? How does one go about soliciting higher( more representative of current prices)figures for their property?
Pete Wrench said:
From my experience in that county, the threshold was about $400/acre, with the average between $500 and $600 per acre. That was 2-3 years ago, and the price of oil has come up nicely since I was out there. So Buddy is right, once again.