San Augustine County Texas Mineral Rights for Sale

Starting Bid: $87,500

• State : Texas
• County : san-augustine
• Legal Location : A-227, A-551, A-337
• Net Acres : 24.33
• Active Lease : Yes
• Royalty Rate : 20%
• Producing : yes
• Average Income : $10/Month

Comments:

Update:  11/27/2024

Under Contract

____________________

This is an opportunity to buy acreage in San Augustine county with excellent upside potential.  There is a single horizontal well drilled on a 684 acre unit leaving a lot of upside when future drilling occurs.  With gas prices continuing to move higher, this is a great long term investment for the buy and hold oil and gas investor.  There is activity in all directions surrounding this acreage.  It’s only a matter of time before more drilling occurs here.

The owners are currently being paid by two operators.  Both Exco and TGNR send royalty payment for this ownership.  We took the combined ownership from each operator to get a combined .002223 NDI as seen on the ownership estimate and in the tax appraisal.   There are two brother who own this acreage, with each brother having 12.17 NRA for a combined 24.33 NRA.   The income being generated is spotty and not material, so we are estimating it at $10/month.  We are showing a 20% lease royalty rate, however, this is unconfirmed and all bids should be based upon the net royalty acres owned.

Important Notes: 

-Please note that this sale only includes the Park SU unit and does not include the Park West unit, which borders this unit and overlaps the same abstracts. The PSA and deed need to be very specific and clear that the ownership being conveyed is the Park SU unit only (including all right title and interest to that unit), but excludes the Park West unit.   You may of course submit a bid for the Park West acreage, but the sellers intent is to only sell the Park SU.

-The sellers have additional acreage in San Augustine that does not convey with the sale.  This sale is limited to a single unit.

-The seller may inherit additional acreage within this same unit in the future.  As such, language must be included in the deed which restricts this sale to only the ownership owned as of today and does not include any future inheritance the sellers may get in this unit.

-With the above in mind, we are requiring that both the PSA and Deed as an Exhibit to the PSA be provided at the same time.  IE the sellers will agree to the deed language up front at the same time as the PSA.

For this listing, we are requiring the following:

1. 1. Special Warranty Deed – Provided as an Exhibit A to the PSA which is restricted to just this unit and does not include any future inheritance.
   2. 30 Day Close
   3. Any adjustments to purchase price greater than 10% must be mutually agreeable.
      
   4. Our closing process included in the PSA, which is:   At closing, buyer will provide the final 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.

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

Download Files

We will begin accepting offers on Thursday, November 21st.

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.