Rig on Location | 320 NRA | Reagan County Texas Mineral Rights for Sale

Starting Bid: $3,000,000

• State : Texas
• County : reagan
• Legal Location : W/2 of Section 192, Block 2, Abstract 64, T&P Ry. Co. Survey, Reagan County, Texas
• Net Acres : 320
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : no
• Average Income : N/A

Comments:

Rig on Location – 320 NRA in Reagan County, Texas

A rig is currently on location!  Texas Royalty Brokers is offering 320 net royalty acres (NRA) in the W/2 of Section 192, Block 2, Abstract 64, in Reagan County, Texas.

Arete Creek Operating is the operator, and the package includes ALL INCOME from the UNDERDOG 1132B currently being drilled.  This well just spud on 10/13/2026.  Note:  Drilling info is showing the start point and the end point of the well, but based upon the attached Arete plat map, we believe this will be a U-turn well.

Lease Agreement Details

The owners have 320 net mineral acres (NMA) under a 25% royalty lease. Under the operator’s interpretation of the outstanding 50% non-participating royalty interest (NPRI), the owners retain a 12.5% royalty. On the standard 1/8 royalty basis, the owners have a total of 320 NRA.

The brothers originally leased the acreage in their individual names and subsequently conveyed their ownership to Graham Sons Minerals, LLC. The supplied payment email documents a scheduled combined lease bonus of $1,680,000, which the sellers report receiving: $840,000 per brother. At $3,000,000, the starting bid is less than twice that lease bonus alone.

We believe the lease is exceptionally favorable for the buyer. It includes a no-deductions provision for production and post-production costs, except the lessor’s proportionate share of taxes; a Pugh clause; and depth-release provisions. The deep-rights release generally reaches depths 100 feet below the base of the deepest producing formation following the applicable primary-term or continuous-development trigger. Buyers should review the executed leases for the full provisions, timing, and qualifications.

Unresolved fixed-versus-floating NPRI issue

The old reservation refers to one-half of the usual one-eighth royalty, creating a fixed-versus-floating interpretation issue. Arete Creek’s June 15, 2026 letter takes the position that the NPRI floats with the lease royalty. The seller reports that they have not signed a stipulation agreeing to that interpretation. A buyer may evaluate a legal challenge with its own Texas title counsel, but no successful outcome is represented and the 320 net royalty acres represented is the conservative interpretation. The operator’s letter illustrates a 12.5% retained royalty under its floating interpretation versus 18.75% under the alternative fixed interpretation. Buyers should review the original instruments, judgment, and correspondence included in the package.

Adjacent acreage and longer-horizontal potential

There is undeveloped horizontal acreage both north and south of the W/2 of Section 192, currently held by production from aging vertical wells. Diamondback is identified to the north and Crescent to the south. This creates an opportunity for a larger operator to explore a production sharing agreement and longer horizontal laterals across adjacent sections, potentially involving Arete Creek and one or both neighboring operators.

Strong Production in the Section Just South of 192: Sugg-C- 1914SU Well Economics

The Sugg-C- 1914SU well in adjoining Section 191 provides a useful nearby production example. The supplied production snapshot through July 2026 reports 295,383 barrels of cumulative oil and 2,287,059 Mcf of cumulative gas. We estimate this one well has generated more than $20,000,000 in gross production revenue, compared with an assumed $7,500,000 drilling cost. This is an illustrative gross-revenue estimate, not audited receipts, net profit, or royalty income attributable to this offering. Actual realized prices and costs vary, and neighboring performance does not guarantee results here.

Attractive entry price and prior east-half sale

The sellers previously sold their ownership in the E/2 of this section. Contact Texas Royalty Brokers for additional details about that sale. We believe the current starting bid is attractive in light of that prior transaction. The E/2 is excluded from this offering.

Starting bid: $3,000,000. We begin accepting offers on Tuesday, October 27, 2026.

We believe a conservative NPV10 indication for the ownership is $3,500,000+, making the starting bid aggressive relative to our modeled value and the development opportunity.

Our $3,500,000+ NPV10 estimate combines modeled near-term production potential with future horizontal development upside, discounted at 10%. The supplied illustration assumes oil at $100 per barrel for the first three years and $75 thereafter, the gas-price assumptions shown in the supplied illustration, and a combined 10% allowance for taxes and deductions in the model. These are modeling assumptions. Value depends on well performance, timing, prices, spacing, and future development decisions. At a $3,000,000 starting bid, we believe this opportunity is priced aggressively.

This sale and conveyance are limited to the sellers’ mineral ownership in the W/2 legal location described above.

Please note that our bidding process will be followed on this listing. Our bidding process is designed to create a fair and transparent process for all buyers. We do not give preference to any particular buyer. There is no take it down price on this listing or any other listing we post. No buyers will be given a last look or the ability to call at the last minute and outbid the best offers we have received.

We respectfully ask that you take just a few moments to review our Texas Royalty Brokers bidding process.

For this Reagan County listing, we are requiring the following:

1. Special Warranty Deed.
2. 30 Day Close.
3. Any adjustment to the purchase price greater than 10% must be mutually agreeable.
4. Our closing process included in the PSA: The PSA must include the proposed mineral deed as an exhibit for seller review and approval before the PSA is signed. At closing, buyer will provide the agreed 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.
6. The PSA must include an exhibit containing the buyer’s proposed deed. The sellers must receive and approve the deed before signing the PSA.
7. The PSA may provide that the parties will cooperate on corrective deeds if necessary, but it may not give the buyer authority or a right to require corrections to deeds predating our clients’ ownership, including prior conveyances between family members.

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

Download Listing 401295 Files

We will begin accepting offers on Tuesday, October 27, 2026.

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 owners have exclusively listed with Texas Royalty Brokers. Please do not contact the owners 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.