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Denton, TX
Super easy process. Emily was great. She communicated clearly and promptly thru ought the whole process. I would definitely recommend them.
Reeves, TX
My experience working with Texas Royalty Brokers to market my mineral rights has been nothing but a great experience! They were professional, informative, prompt and made selling my mineral rights a smooth and fairly easy process. I would highly recommend them.
San Juan, NM
Knowledgeable, competent, Great communication and ultra professional. They explained in detail every step along the way. I will defiantly use them again.
Gregg, TX
Texas Royalty Brokers is wonderful! Everyone is professional, knowledgeable, and so nice. They are responsive and thorough, and I’m so glad they handled my transaction. Everything went very smoothly!
Denton, TX
A superb service that obtained the target price I had set for the sale of my minerals. Emily, who is great to work with, patiently navigated me through the process from beginning to end. Highly recommended!
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Listing Title
Buy Mineral Rights in Howard County Texas
Listing ID
401142
Listing Status
sold
- Listing Posted - complete
- Listing Evaluation - complete
- Accepting Offers - complete
- Client Review - complete
- Best and Final - complete
- Under Contract - complete
Please take a moment to learn more about each listing phase.
We are currently in the listing evaluation phase for these mineral rights. We will begin accepting offers on Tuesday, November 8th.
Listing Maps
Listing Files
Please click the download button below to view the listing files. Listing files include maps, check stubs, and other documentation.
Listing Details
Starting Bid: $11,250/net royalty acre
- State : Texas
- County : howard
- Legal Location : Block 34, T1N, Section 13 Block 32, T1N, Sections 9 & 16 Block 32, T1N, Sections 41 & 32
- Net Acres : 38.84
- Active Lease : Yes
- Royalty Rate : 25%
- Producing : yes
- Average Income : $8,028/Month
Comments:
Update: 12/22/2022
SOLD
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Update: 11/11/2022
Sale Pending
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This is an opportunity to buy prime acreage right in the heart of Howard County Texas. This acreage is absolutely surrounded by permit activity and also has rigs running around it in every single direction.
There are currently 4 allocation wells, the Lily wells under Ovintiv, that are producing the bulk of the royalty income. These wells are still relatively flush production as they are right around 2 years old. Note that we believe these 4 wells are allocation wells based upon the acreage designation. The owner has an NPRI ownership in these wells.
In addition to these 4 wells, there is also a single horizontal well under SM Energy on 642 acre spacing with 7.5 NRA owned in the unit. This spacing unit alone represents massive upside potential with room to drill at least 5 more horizontal wells in the future.
There are also some old vertical wells being produced on 2 160 acre units that are side by side. There are over 18 net royalty acres here, with no active horizontal wells. Once a new unit is formed to drilled horizontal wells on this acreage, the buyer will realize a large amount of upside.
The royalty checks are currently in the name of Daryl Zapata, who recently passed, and there are three daughter that are heirs to his estate. The ownership may fall under a trust (attached), but all three daughters are on board to sell.
The starting bid price on this acreage is $11,250/net royalty acre, or $436,950 for 38.84 NRA. This means you are getting a 4.5 year pay back on current cash flow AND a massive amount of upside potential as future drilling occurs. If you have been looking for an opportunity to acquire acreage in Howard County with a fair multiple and upside, this is it!
We are estimating a 25% royalty rate, but this is not confirmed. All bids should be based upon 38.84 NRA. Any adjustments to purchase price that reduce the purchase price by 10% or more must be mutually agreeable by both buyer and seller as there is substantial monthly royalty income being generated.
Most up to date listing files at the link below:
We will begin accepting offers on Tuesday, November 8th.
All buyers are required to either do a 14 day close, make a $5,000 deposit, or sign our qualified buyer agreement once a deal has been verbally agreed upon.
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.
Exclusitivity Notice
All listings posted at Texas Royalty Brokers are exclusive. The seller has agreed to exclusively sell through our company and will become personally liable if you close a deal directly with the seller. Please direct all offers and communication directly to Texas Royalty Brokers.
Accepting Offers on 11/8/2022