Oil and Gas Mineral Interest For Sale in San Augustine County TX

Starting Bid: $308,320

• State : Texas
• County : san-augustine
• Legal Location : A-327 - Specific to the Nolte Unit
• Net Acres : 38.54
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $2,702/Month

Comments:

This is a rare opportunity to buy mineral rights in San Augustine County Texas with a rig on location and solid royalty income.

Our client has a total of 77.09 in the Nolte Unit, and they are selling 50% of this ownership or 38.54 net royalty acres.  There are already 3 existing wells on this acreage generating nice cash flow.  The owner is averaging $5,404 per month in the Nolte Unit alone.  The average for 50% of the Nolte ownership is $2,702 /monthly.   This means the cash flow value alone is about 42% of the starting bid price.

Note:  The seller is in pay on additional ownership listed on her check stub in the same Abstract.  These mineral rights are not included in the sale.  Your deed must be specific to the Nolte Unit.   The vast majority of the value is in the Nolte.

Check Stub Amount:   Our client is currently getting taxes withheld on her check stubs.  This makes the net values look lower than they actually are.   We used the gross values to calculate her income.   It appears to us that she has a very strong lease with absolutely no deductions.  All of the deductions coming out are just taxes since she is in withholding.

Rig on Location in San Augustine!

There is a rig on location currently.  They are drilling two new wells.  The “Chipper-Teddy-Nolte” wells are being drilled and the buyer will get all income associated with 50% of these new wells when they come online.

When you look at the cash flow already being generated and combine this with the near term upside from the two new DUC wells, this is a great investment opportunity with near term upside.

Our client does have bids right around the starting bid price.  It will take a starting bid price offer or higher to be competitive on this deal.

For this listing, we are requiring the following:

1. 1. Special Warranty Deed
   2. 30 Day Close
   3. Sale is specific to the Nolte unit.  You cannot include all of A-327 as she has other income from this abstract.
   4. If the purchase price adjusts down by more than 5%, either party may terminate the agreement.  Due to the cash flow and near term upside, we have a very tight adjustment window on this listing. 
   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 2nd. 

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 $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.