Mineral Buyers in Midland Texas

Starting Bid: $105,000

• State : Texas
• County : midland
• Legal Location : Block 39, T2S, Section 12 Block 39, T2S, Section 11
• Net Acres : 3.83
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $217/Month

Comments:

Update: 8/29/2022
The sellers family member (who does not want to sell), has indicated they also have not been getting any royalty income.  The operator did confirm that they are “in pay on all accounts”.   We believe the seller has an ownership in the 3DW well based on the fact that this well has part of the 80 acre unit included in it.  However, we believe they are simply behind on getting royalty payments out to the owners on this.

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This is an opportunity to purchase mineral rights in Midland County Texas.  This acreage is located in a prime spot right in the middle of Midland, surrounded by rig activity.

There are currently 4 old vertical wells producing a little over $200/month on average.  In addition, a new well has been drilled called the Ward 3DW.  This well has been producing for 5 months now.  However, the seller has never collected any of the money from the Ward 3DW.  We believe they may not have signed their division orders so this money is currently held in suspense.  The seller recalls getting some documents to sign but does not remember what those were.

The seller is not going going to release these funds from suspense.  Instead, they would prefer to just sell the mineral rights and let the new buyer collect those funds out of suspense.

The seller is working on contacting Pioneer to determine how much money is held in suspense and to determine if the reason they haven’t been paid is simply because they didn’t sign a DO.

We believe the seller has 3.83 net royalty acres.  We note that the Ward 3DW well is showing Terry with a .00127388 NDI.  We do not believe this is correct because Terry has this same NDI on the Ward #2 well which is only 80 acre spacing, where the 3DW well is 161.3 acre spacing.   We are hoping that Pioneer can clear up the NDI in the new unit as we expect it to be approximately half of the .0012733 NDI since the unit size has doubled.

The seller currently has offers on the table.  All offers made should be on an NDI basis only.   We are not representing 3.83 NRA of ownership.  This is only an estimate.  All offers should be made based on the NDI they are currently in pay on.

The seller would like to start negotiations at $105,000 for this interest.

You can download the available listing files here.

Download Files

We will begin accepting offers on Wednesday, August 24th.

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.