Midland County Texas - Buy Mineral Rights

Starting Bid: $325,000

• State : Texas
• County : midland
• Legal Location : Multiple locations
• Net Acres : N/A
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $5,484/Month

Comments:

Update 9/14/2024:

This property is no longer available

__________________

Update 9/6/2024:

This is sale pending

__________________

Update 8/29/2024:

Accepting best and final offers through end of day Wednesday, September 4th.

__________________

This is a great opportunity to purchase mineral rights in Midland County, Texas.  This property has it all.  There are multiple active wells, solid royalty income, new permits, newly completed wells and new DUCs on this property, in which we believe our client has ownership.

This client receives an average of $5,484/Month in royalty income from the Parks Field Unit, Roy Parks Unit, Timmerman Units, Mary Scharbauer Units, Arch Benge Unit, Marion V Benge Unit, and Braun B and C units.

As you can see in the attached wells table and DI maps, there are 8 DUCs in the ownership in the Roy Parks Unit.  Our client is in the tax rolls for the active and inactive wells in the unit with matching NDIs, therefore we believe he will be pay when the DUC wells come online, however this is up to the buyer to verify.

We are not representing an NRA amount in this listing.  The reason is that there are multiple units and allocation wells.  We do not feel comfortable representing any specific NRA and all bids should be based upon the NDI on the check stubs.  The starting bid price is reflective of a cash flow only deal, despite the fact there is huge upside potential from the DUC wells.

There are 3 wells completed in early 2024, from which our client has not yet received royalty income.  We believe our client will be in pay on these completed wells in the future, but this is up to the buyer to verify.

Important Notes:

• We believe our client has other ownership within Midland county.  This listing is specific to what is on the check stubs.  We are only conveying ownership that is our client’s check stubs and the NDIs represented on his check stubs.
• Our client has previously sold in nearby units in 2017, and the tax rolls do not appear to be updated.
• Our client sold some mineral rights within these units in 2016, however, this conveyance was specific to ownership inherited from Miriam R Bohls and our client reserved all mineral rights not related to this inheritance.
• Related to the above, the tax roll shows an NDI of .000652.    If we take this and subtract the NDI on the 2016 conveyance (.000162667), this shows a remaining NDI of .000489, which matches the check stubs.

For this listing, we are requiring the following:

1. Special Warranty Deed
2. Deed must be specific to the acreage on the check stubs and must not convey any future inheritance and be specific to what he owns and is in pay on today.
3. 30 Day Close
4. There are no adjustments allowed unless you prove less NDI than what the seller is currently in pay on, and buyer and seller mutually agree.  If a lower NDI is proven in title, only the NDI proven in title would convey, and the seller would retain any NDI not proven in title
5. Our closing process included in the PSA, which is:   At closing, buyer will provide the mineral deed.  The seller will execute the mineral deed and return it to Texas Royalty Brokers.  Texas Royalty Brokers will provide buyer with a scanned copy of the deed, and buyer will then wire funds to seller and Texas Royalty Brokers respectively.  Once funds are confirmed, Texas Royalty Brokers will overnight the deed to the Buyer.   
6. Buyer must close within 14 days or sign our qualified buyer agreement.

We will begin accepting offers on Tuesday, August 27th.

To view/download the listing files, please visit the link below:

Download Files

All buyers are required to either do a 14 day close or sign our qualified buyer agreement once a deal has been verbally agreed upon.  In certain situations, we may require a $5,000 to $10,000 earnest deposit at the sole discretion of Texas Royalty Brokers.

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.