Reeves County Texas - Mineral Rights For Sale

Starting Bid: $4,000,000

• State : Texas
• County : reeves
• Legal Location : C5, Sections 3, 4, 5, 8, 9, & 10
• Net Acres : 177.78
• Active Lease : Yes
• Royalty Rate : 25%
• Producing : yes
• Average Income : $14,175/Month

Comments:

Update: 8/22/2024

Sold

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Update:  7/12/2024

Under Contract

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Update:  6/27/2024

We will be accepting offers on the initial round of bids until July 8th.  Please submit your initial bid on or before July 8th.

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This is an exceptionally rare opportunity to buy acreage that has everything positive happening.   Deals do not get better than this.  Whether you are looking for a cash flow deal, a deal with upside, or a buy and hold deal, this is it.

Below are the important details on this listing:

Rare Unit –  This is a very rare unit configuration with a large 3,840 acre unit.  The seller has 177.78 NRA, so you get a large amount of acreage setup in an extremely diversified unit that will produce new income for years to come.

20 Active Wells – These wells are generating $14,175/Month in royalty income.  These wells are all between 5 years old and 10 years old.  This means we are past the initial decline from new production, but the wells still have decades of production remaining for long term income.

10 Completed Wells – There are 10 brand new wells that were just completed in April/May 2024.  The seller has not yet received DO’s, and the buyer will receive all royalty income from these 10 new wells.

6 Permitted Wells – There were 6 new permits approved on 5/21/2024.  VTX Energy drilled the most recent wells just months after getting permit approval.

Upside Potential – In sections 8/5, there are just 4 wells drilled across both sections.   In sections 9/4, there will be a total of 12 wells once the recently completed wells come online.  This means that in Sections 8/5, there should be room for an additional 8 wells in the future on top of the permitted wells in Sections 10/3.

We estimate the seller has a total of 177.78 NRA.  The lease agreement is attached, which shows a 25% lease with no deductions. This can be verified by looking at the check stubs which show no deductions on the revenue.   There is also a depth clause within the lease.

The seller on this property is an individual and he is very easy to work with.  He wants to move forward on a sale to simplify his estate and we feel confident he is moving forward on a sale at or above the starting bid price.

The seller has around $16K in past due taxes owed.  This is being paid off this week and will be cleared prior to closing.

Important Notes:

• All bids should be based upon 177.78 NRA.   Any adjustments greater than 10% of the purchase price will require mutual agreement between buyer and seller.
• Buyer is entitled to receive all royalty income from the 10 completed wells regardless of the effective date.
• The seller has other ownership in Reeves / Ward County.  This sale is only for the Waha unit ownership, and nothing else.  No land (if owned) would convey.
• A special warranty deed is required.
• A maximum 30 day close is required.  Any extensions to be mutually agreeable.
• A $25,000 deposit is required.  This deposit is only refundable if a title report / supporting documents are provided which prove a title failure of greater than 10%.

We will start accepting bids on June 26th.  Please hold your bid until this date.  All buyers will be given an equal opportunity to bid and no deals will be accepted until we open this up for bids and buyers have been given a few days to submit a bid.

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

Download Files

We will begin accepting offers on Wednesday, June 26th.

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.