Buy Mineral Rights in Shelby Texas

Starting Bid: $354,985

• State : Texas
• County : shelby
• Legal Location : Various, please see the attached wells table and associated maps.
• Net Acres : 65.70
• Active Lease : Yes
• Royalty Rate : 12.5%
• Producing : yes
• Average Income : $605/month

Comments:

This is an opportunity to pick up some nice production held under XTO with a rig on location and DUC well.

The sellers are receiving approximately $600/month from royalty income.  We have attached the latest check stubs in the documents available for download at the link above.   While there is some nice consistent royalty income, the upside is in the new Owls-Sun Devils well that is currently in DUC status.   We believe this well is sitting right over their largest tract of ownership.

They have not received a division order yet for the Owls-Sun Devils well.   There is another well in DUC status next to this well, the Red Raiders 2H.  We believe this well has been drilled in the unit adjacent to their production and they will not get any royalty income from the Red Raiders.

There is also royalty income being received from the Mustangs unit (overlaps Owls), Vastar Unit / Hawkeys Units (overlapping each other).

The sellers are interested in selling 100% of their ownership.

All bids on this acreage should be based on the ownership estimate provided in the attached documents.   The estimated ownership is as follows:

48.58 NRA – Owl Unit
10.92 NRA – Mustang Unit
6.20 NRA – Hawkeyes Unit

Please note that all bids must be on a per NRA basis on a per unit basis.   No blended rate offers that combine all units together for a single price per net royalty acre will be accepted.

The starting bid is as follows:

Owl Unit – $6,250/NRA = $303,625
Mustang Unit –  $3,000/NRA = $32,760
Hawkeyes Unit – $3,000/NRA = $18,600

Total:  $354,985

All bids should have a break down of price per net royalty acre by unit.

Your PSA may allowing for adjusting the final payment at closing on the basis of how many NRA are proven through title.

Note:  We believe there may be overlap between the Mustang Unit and the Owl unit.  There are 10.92 acres in the Mustang unit.   If the Mustang acreage overlaps the Owl unit, we may be double counting 10.92, meaning the total NRA owned is 54.78 acres.

Title will need to be run to prove out the net royalty acre ownership.  A title report must be provided prior to closing to prove out the ownership.

Important:  The seller has additional surface ownership, and possibly non-productive mineral rights ownership, in near or on these mineral rights in Shelby County.  The mineral deed must be for mineral rights only and must be specific to the NRA’s being sold that are represented on the check stubs.   No surface ownership or any other mineral rights are for sale outside of those listed on the check stubs should be conveyed.

We do not show any property taxes due, you can search here:

Shelby County Property Tax

These mineral rights will be in the evaluation phase until Monday, June 13th.   No bids will be considered until we are accepting offers on June 13th.

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.