I have mineral rights on several properties nine miles north east of Ft. Stockton, Texas in Pecos county.In January 2012 Exxon leased over twenty thousand acres adjacent to my west property line. X T O 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 012, Exxon leased an additional 5,000 acres on the east side of my property and X T O has filed application for a new well adjacent to the original well. This wells 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
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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 you 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 my be far more valuable than a bonus payment.
A lease- sale participation pan 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
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Hayes-
Too low as a bonus and certainly as a purchase.