Karnes County Texas - Working Interest for Sale

Starting Bid: $170,000

• State : Texas
• County : karnes
• Legal Location : Multiple Legal Locations
• Net Acres : N/A
• Active Lease : N/A
• Royalty Rate : N/A
• Producing : yes
• Average Income : $3,256/Month

Comments:

Update 11/25/2024:

This listing is not longer active and did not sell.  If you are interested in submitting an offer, please contact us.

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Update 11/12/2024:

This listing has had a price reduction to $170,000 down from $215,000.  Seller is motivated to close before the end of the year and at this updated list price, this is a 4.35 year payback for this opportunity.

The October check was added to the listing files and revenue summary.

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Update 10/14/2024:

This listing has had a price reduction to $215,000 down from $250,000

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Important:  This is a wellbore only Working Interest.  Please carefully read the information below before submitting a bid.
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The ownership consists of multiple wellbore only working interests in Karnes County Texas.  The interests are spread out in multiple locations around the county.  All of these interests are currently operated by Tidal Petroleum.

In 2024, this ownership has generated an average of $4,587/month.  However, some of these wells are currently flush so we are representing the cash flow based on the last 3 months.  The average income in the last 3 months is $3,266/month.

The attached settlement statements are misleading.   The monthly check total shows the gross amount of net positive wells, but excludes the wells where the owner owes money.  The 7/2024 check is a good example.  It shows the check amount as $4,517/month, which is accurate. However, it doesn’t account for the amount owed of $around $500.  This makes the actual income for July $4,046 when you take the negative wells into account.

On the revenue summary attached, we break down the monthly statements on a well by well basis ignoring the total and using the actual performance of each well.  This gives you a more accurate view of the revenue being generated by this ownership.

A few important notes on this ownership:

*We have attached the assignments of Wellbore only WI.   The assignment for the Moy PSA wells was not found publicly, but these assignments all appear to be the same language so we are assuming the same for the Moy PSA wells.

*Please note the restrictive nature of the assignments.  The assignments exclude any upside you might get from a sidetrack, drilling to deeper formations, or other upside out of the current wellbore

*The seller currently appears to have a negative balance on the Janysek 1H and Fox Wells.   We believe this amounts to approximately $3K according to the statements.  The buyer is purchasing this ownership as is, and would need to settle that up with the operator after closing.

All bids should be based on the cash flow being generated.  There will be no adjustments allowed at closing for any reason.  This is a wellbore only interest, so the value is in the cash flow being generated.

For this listing, we are requiring the following:

1. 1. Special Warranty Deed
   2. 30 Day Close
   3. No adjustments allowed unless mutually agreeable
      
   4. Buyer agrees to clear any past due amounts with the operator after closing, as represented on the provided statements.  We currently we estimate this around $3,000.
   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 Tuesday, September 24th.

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.