Buy mineral rights in Midland County Texas

Starting Bid: $2,650,000

• State : Texas
• County : midland
• Legal Location : Section 3, Block X
• Net Acres : 81.7
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $6,049/Month

Comments:

Midland County Texas Mineral Rights for Sale – 81.7 NRA – 10 DUC wells

This listing represents a very rare opportunity to buy are large acreage position in the heart of Midland County.   There are currently 11 wells producing an average of $6,050/month in royalty income.  There are 10 DUC’s which will provide an immediate ROI to the buyer.  There is also substantial upside potential for additional wells and deeper drilling.   The deep rights were just leased at the end of 2024.

Existing Production – 11 Producing Wells

The owner is currently in pay on 11 production wells in the Mask HZ unit.  The existing wells are between 6.5 years and 9.1 years old.  These wells are past flush production, are still very young, and generate the owner and average of $6,050/month.  While these wells are a small part of the overall value in this package, they highlight how strong the cash flow from the new wells will be even years beyond flush production. In addition, they provide immediate income from this ownership before the new DUC wells are brought online.

Note:  We are showing a 12.5% lease rate to provide a net royalty acre number.  We do not have the exact lease rate but we assume it’s leased at a much higher royalty rate than 12.5%.

DUC Wells – 10 New Wells

There are currently 10 new DUC wells that will be producing in the near future.  These new wells will generate substantial income and immediate ROI for the buyer.   The seller’s have not received DO’s for these wells and this sale will include all production from the new wells regardless of the effective date of the sale.

Our internal model shows that these 10 DUC wells will make the deal profitable by themselves.  We assumed $65 oil and $3 gas.  Using the average production from the 11 currently producing wells and modeling it against 10 new wells, we show cumulative income over the $2.65MM starting bid price.  This does not take into account the already producing wells OR the upside potential described below.

Upside Potential

We show upside potential in two different ways on this package.  The DUC wells alone make this deal profitable, so the additional upside makes this deal even more attractive.

Upside Potential 1 – Additional  Drilling

If you look at the section 9, Block 39, T1S, there are 26 South Curtis Ranch wells.   After the new DUC wells come online, this will give the Mask HZ unit a total of 21 producing wells.  Based on the density just next door to the Mask unit in the South Curtis unit, we believe there is room for at least 5 more additional wells.

Upside Potential 2 – Deep Rights

In November 2024, RRIG Energy leased the deep rights below the Wolf Camp formation from the seller.  The attached lease bonus payment from December 17th confirms they were paid $80,656 for leasing just the deep rights on this ownership.   We also have the full lease agreement for the deep rights included on the listing.

This deep rights oil and gas lease in Midland County is structured on very favorable terms for the mineral owner and offers strong protections that enhance long-term value. The lease carries a full 25% royalty and includes clear language providing that the royalty is free and clear of post-production costs, with no deductions for gathering, compression, transportation, or processing, with only applicable taxes may be withheld. That “no deductions” structure is particularly valuable in the Midland Basin, as it protects net revenue and preserves upside in future development. The lease is limited strictly to depths below 100 feet beneath the base of the Wolfcamp Formation, leaving shallower zones unaffected, and carries a short three-year primary term.

In addition, the attached addendum strengthens the position further with a true Pugh clause, ensuring that only acreage included within a producing unit is held by production. Shut-in payments cannot be used indefinitely to warehouse acreage, as they are capped at two years per occurrence and three years in the aggregate. The lease also includes a continuous development provision requiring ongoing drilling activity after the primary term to maintain non-producing acreage. Overall, this is a well-structured deep rights lease with strong royalty protection, limited depth burden, and meaningful development safeguards that support long-term value.

More importantly, Fasken oil has been running a deep drilling program just East of this acreage.  They drilled a handful of the test wells, and have now drilled an additional 24 wells.

These 24 wells are sitting in DUC status, completed, or currently drilling so we do not have production data.  However, if you look at the Fee BN 3328 (4232947380) you can see the production on some of this deeper drilling.  We estimate they are break even on drilling cost within 12 months drilling at deeper depths.

This opens up another huge opportunity for buyers to further increase the ROI on this deal.   Even a handful of deeper wells on this acreage in the future would make this deal extremely profitable.   If you look at what Fasken is doing just to the East and the fact the deep rights were recently leased, this is not just speculation. There is a real probability the deep rights will be drilled in the future.

Starting Bid, Adjustments, & Timeline

The starting bid for this package is $2.65MM.  When you consider the value of the DUC’s, current income, and upside potential, this starting bid is conservative.  The seller is currently in pay on 81.7 net royalty acres.  There is no reason they would not be in pay on 81.7 net royalty acres in the new DUC wells.  No adjustments are allowed on this package unless mutually agreeable.

We will open this listing up for bids on Tuesday, March 3rd.  We expect this to be competitive listing.  Please take a look at our recently updated bidding process.  Our process has been updated to ensure a transparent and equal playing field for all buyers.

For this listing, we are requiring the following:

1. 1. Special Warranty Deed
   2. 30 Day Close
   3.  No adjustments will be allowed unless mutually agreeable.
   4. 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.   
   5. 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 Tuesday, March, 3rd.

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.

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