Your offer may be closer than you think

We are interested in any and all opportunities to acquire minerals and royalties. Contact us and we can let you know what information we need to make an offer on your interests.

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What are mineral
Rights & Royalties?

Your mineral rights are legal rights that entitle you to explore, mine and produce the oil or gas on or below the surface of your property. Mineral rights can be sold or leased to a third party. They may also be gifted or passed down as an inheritance to your family members.

In most countries all mineral rights belong to the government.

In the United States, all mineral rights originally belonged to the owner of the surface of a parcel of land, but as mineral production became lucrative, ownership of mineral rights was often separated from surface ownership.

In the state of Texas, the common use of the term “mineral rights” is construed to be oil, gas, or other associated products. It is not intended to include those minerals that can be mined on the surface, such as water or strip mines for coal.

Answering your questions

What is a Net Mineral Acre?

A net mineral acre is your portion of ownership out of the whole gross acreage tract.  If the tract you own in is 100 gross acres, and you and your siblings each own 1/4 of the acreage, you would own 25 net mineral acres in the tract. (100)*(.25)=25 NMAs. Net mineral acres equal the gross tract size multiplied by your ownership percentage in the tract.

What is a Net Royalty Acre?

Oftentimes, offers to purchase your minerals are expressed in terms of price per net royalty acre. Net royalty acres and net mineral acres oftentimes do not equal the same so you should be careful to note the difference. The major difference is that a net mineral acre does not take into account the royalty rate your minerals are leased at, whereas a net royalty acre does. In the past it was common to have your minerals leased at 1/8th or 12.5%, which would help determine your NRI. Because of this standard 1/8th royalty rate, net royalty acres use a baseline determination of an 1/8th lease and then scale up from there based on your actual royalty rate.

To determine your net royalty acres, the formula is: (net mineral acres)*(royalty rate)/(1/8th)

So if you own 100 net mineral acres leased at 1/4th, you would own 200 net royalty acres – (100*.25)/.125=200 NRAs.

In this case, an offer of $5,000 per net mineral acre would not equal an offer of $5,000 per net royalty acre, it would only be half.

How is my Net Revenue Interest (NRI) on a division order calculated?

To calculate NRI, multiply your net mineral acres owned in a unit by the royalty rate (ex. 1/5th) and then divide by the unit size (ex. 640 acres) — (20)*(0.2)/640 = .00625 NRI

What is a division order?

Because a well is often owned by multiple persons or entities, a division order specifically details your individual ownership interest in an oil and/or gas well or unit.  The decimal/royalty interest indicates how much of the revenue you will specifically receive as a result of the proceeds that come from the sale of the well’s product. The division order is typically the result of an attorney’s title opinion and is based on public records from a county. Royalties are usually not distributed to an owner until they have signed a division order and after a few months of production from a well or unit.

Does it mean that you aren’t interested If I haven’t received an offer for my minerals or royalties?

We are interested in all opportunities to acquire minerals and royalties. CONTACT US and we can let you know what information we need to make an offer on your interests.

In the offer I received, what does it mean in the conveyance when it says, “the sum of Ten Dollars ($10) and other good and valuable consideration”?

The offer that Pecan Creek Energy is actually making is the offer shown in the draft and offer letter.

Because the mineral and royalty conveyance will be filed on record in the county courthouse, many sellers and buyers would prefer to keep the actual transaction price outside of the public domain.

In the state of Texas, therefore, it is common practice to state on the conveyance “Ten Dollars ($10) and other good and valuable consideration” solely for privacy.

How firm is the offer I received in the mail?

Pecan Creek Energy bases our initial offers on the publicly available data detailing the size of the unit your interest falls in and the decimal or net revenue interest you are being paid on that unit. Our offer assumes your interest covers all depths and is not an interest that expires at a given time (a “term” interest). Unlike many other companies, it is never our intention to make larger offers than we are willing to pay. We would only reduce the price of our offer if you have sold all or part of your interest in the past year or if the publicly available data proved to be incorrect.

Contact Us

We are always seeking high-quality mineral and royalty interests. For more information, please call 214-613-1575, email me, John David Wells, at or fill out the form.

Please include the location of your property (state, county/parish, unit/section) and an estimate of your net acreage. The more information you can provide about your interest, the better we can build your offer.

John David Wells
Let's build your offer.