I have mineral rights on several properties nine miles northeast of Ft. Stockton, Texas in Pecos County. In January 2012 Exxon leased over twenty thousand acres adjacent to my west property line. XTO immediately drilled the number 1 San Pedro Ranch to 9,000 feet. No completion was announced, but the operator has been flaring gas since fall.
In June 2012, Exxon leased an additional 5,000 acres on the east side of my property and XTO has filed application for a new well adjacent to the original well. This well’s depth was amended from 9,000 to 13,000.
I have received offers to buy and to lease these properties, but the offers are in the $500 range.
Any thoughts or suggestion would be greatly appreciated. Thanks, Hayes Parker.
Hayes,
You have several important things to consider in your decisions.
You have the “supply.” Understand the “demand” for your minerals in making any deal. Demand is best assessed through determination of geologic potential production and planned activity.
If your acreage is scattered and/or large, a lease may not be a good idea. There are other ways to protect your control and long term income that may be far more valuable than a bonus payment.
A lease-sale participation plan may be a very secure way to go depending on the wells anticipated and the spacing of your acreage.
Hi, Hayes -
Send me your legal descriptions and I’ll see what I can find out about what’s going on in your area.
If you want to send them privately, accept my offer to be “A Friend” on The Forum and send it that way.
Hope this helps -
Charles
Hayes-
Too low as a bonus and certainly as a purchase.