Purchase Mineral Rights in Karnes Texas

Starting Bid: $60,000

• State : Texas
• County : karnes
• Legal Location : Multiple - Please see attached plat maps.
• Net Acres : 5.88
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $12,743/Month

Comments:

Update: 10/26/2022

Sold

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Update:  9/16/2022

In the download files link below (not the attachment), we have added the September check stub for Murphy.  This latest check was for $12,743. We updated the “average income” to reflect her latest check.   We spoke with the seller today and they are still firm at $60,000.  They are willing to let a buyer keep the October check forward if they get an offer before the October check comes in.  Otherwise they plan to hold onto the mineral rights and continue to collect royalty income.

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The owner of these mineral rights is receiving royalty income from a large number of wells that just came online.  This ownership is spread out over multiple units and multiple operators in Karnes County Texas.  We believe this acreage is effectively 100% drilled up and all wells are now producing with the exception of a single DUC.

In May 2022, the income was a combined $750/month.  In June as the wells started coming online, that income jumped to $3,100/month.  In July Murphy alone produced $23,000 and in August $15,937.  We are representing an “average income” of just $15,937/month since this was their last check amount but it is flush production.

The owner would like to sell 100% of her ownership in the production coming from Murphy, Tidal, and Marathon.

The owner does not want to continue to collect royalty income for tax purposes.  She has collected the August check stub from Murphy, but all future check dates September and forward would go to the buyer.

We believe the seller has approximately 5.9 net royalty acres.  However, this is effectively a cash flow deal.  All bids should be on the basis of the net decimal interests listed on the check stubs.  No adjustments will be allowed unless the operator has been paying incorrectly.

Note:  The seller has cousins who have a remainderman interest.  The cousins all agree that they will forgo their right and are willing to sign away the ownership.  We have attached a deed for a sale that happened in the past where all of the cousins signed for this to occur already.  She has verbally confirmed again that they have no problem doing this so this will remove any remainderman title issues that could come up.  In the past she sold the “Bellah unit” which was right in between the Bellah Patton and Drees.

You can download the available listing files here.

Download Files

The mineral owner has exclusively listed with Texas Royalty Brokers.  Please do not contact the mineral owner directly.  To make a bid or ask questions about this listing, please contact Texas Royalty Brokers using the contact form below.  Our team will quickly be in touch.

We have other mineral rights for sale.