Martin County Mineral Rights for Sale

Starting Bid: $2,961,600

• State : Texas
• County : martin
• Legal Location : Section 21, Block 34, T3N - A-23
• Net Acres : 98.72
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $8,344/Month

Comments:

Best and final offers due on Wednesday, February 26th by 3:00 PM CST.

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This is a great opportunity to purchase mineral rights in Martin County.  There are multiple wells producing, substantial current cash flow, 3 DUCS and excellent upside.

We believe our client owns a total of 197.45 NRA in Section 21, Block 34, Township 3N in Martin County.  Our client intends on selling 50% of his mineral rights at this time or 98.72 NRA.  The royalty income for this ownership averages $16,688/Month and we are representing 50%, or $8,344/Month.

We believe our client’s NRA is broken down in the following way (showing 100% below):

Stokes 21 Unit:

North half of the NE/4: 26.72 NRA and South Half of the NE/4:  29.53

This portion of the Stokes unit, overlaps the Spaulding Unit, which has 3 DUCs, which were permitted in August of 2024.  There are also 4 horizontal Spaulding wells and 2 vertical wells in this unit.

Note:  The seller has confirmed as of 2/6/2025 that they have not received division orders for these new wells.  The buyer will get all income from the new DUC wells related to the 50% being purchased, regardless of effective date.  To further clarify, the buyer will be entitled to 50% of the new DUC’s coming online based on purchasing 50% of the total ownership.

Stokes 1 / Stokes 221 / Stokes 121:

Southwest Quarter: 60.0 NRA, with 2 active vertical wells

Stokes 1 & 2 – Staggs Unit: 

Northwest Quarter: 81.20, with 3 vertical wells

In this NW/4, the Stokes 1 and 2 wells show a .0507825 NDI.  The Staggs shows a .06347 NDI.  We are using the Staggs NRA estimate as we feel the data is more current.  The Staggs well was drilled in 2017, and the Stokes 1 and 2 were drilled in the early 1970’s.  The staggs shows a 159.9 acre unit, and with the .06 NDI, we get 81.20 NRA in this location.

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The Northwest and Southwest quarters of section 21 have only 5 vertical wells, which presents fantastic upside potential in this active area in Martin County.  It’s only a matter of time before this acreage gets drilled as this acreage is in the core of Martin County.

The buyer will realize an immediate ROI as these new wells come online.

Please note that the tax roll does not match the check stubs in many of the locations here.  We found a deed from 2018 that conveyed 50% of the ownership in the SW/4, which may explain some of the discrepancy.   We do feel it’s possible the seller has MORE ownership that what is represented here, but obviously title will need to prove this out.

While we don’t have a copy of the base leases, we believe these leases have a no deductions clause or at least removal of many deductions.  If you look at both the SM Energy and DiamondBack check stubs, there are little to no deductions being taken out.  This creates additional value for the buyer as these new DUC’s come online.

In the 2024 deed to trust, you will note that there is also mention of Section 28.   The seller does not receive any royalty income from Section 28.  We also are not sure whether there is mineral rights ownership in Section 28.   This listing does not include any mineral rights ownership in Section 28, and Section 28 will not be referenced in any conveyance unless title determines there is ownership there and this ownership is paid for.

The seller would like to sell 50% of their ownership.  While we do not believe they are willing to sell all of it, if a very strong offer comes in we believe they would at least consider it.

The starting bid price is $30,000/NRA.   Recent interest suggests it will take a bid at or above the starting bid price to be competitive.

No surface ownership, if any, is conveyed in this sale.

For this listing, we are requiring the following:

1. 1. Special Warranty Deed
   2. 30 Day Close
   3. Any adjustments to purchase price greater than 10% must be mutually agreeable.
   4. A title report must be provided prior to close OR you must do an NMA/NRA deed.  Since the tax roll is showing MORE ownership, we need proof from the buyer that more acreage was not found that we are representing prior to close.
   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.

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

Download Files

We will begin accepting offers on February 18th, 2025.

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 $25,000 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.