Property Owners in the Carrizo Pantego-Arlington pools are urged to take extra steps to inform yourself before considering the sale of your mineral rights at the levels being circulated during the 2010 and early 2011 period.
Your gas lease is different from any others in the vicinity. You are a part of a community pool in which you will participate in all the wells in your neighborhood; not just the one that goes under, or close to, your property. As of February 9, 2011, there are four wells in Area B, and three wells in Area A (Pantego). Only one in each area is actually producing gas for sale at this time. That will change in the next several weeks, and only then could a potential purchaser make a fair estimate of the value of your mineral rights.
There is no way any prospective buyer of your rights could properly value your minerals because no one yet knows the size and production volume to come from these new wells. In addition, even the present number of wells may not be the end of drilling. If the new wells are as robust as the first ones, it is highly likely that additional wells will be drilled. Further, there have been no wells drilled yet in the west half of Pantego...and any drilling and production that comes from future drilling into that area, would add to your royalties.
It is important that you not limit your fact finding solely to the representatives of a company seeking to purchase your rights. If you are intent on selling, there are other lessors in your pool who do have a better view of the value and contacting them might be beneficial to both parties.
If you need further information or updating on drilling and revenues, contact info@pantego-arlingtonoilandgas.com .
