Haskell County Mineral Rights
We buy oil and gas royalties and mineral rights in Kansas and throughout the United States.
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Haskell County, Kansas
A brief overview of oil and gas activity
Haskell County is located in the Southwest corner of Kansas and ranks #2 in oil production and $4 for gas production. Gas wells are more common than oil wells, but Haskell County has seen continuous development since the 1930s through the 1970s, with occasional new wells drilled.
Haskell County’s wells are conventional vertical wells, and many were plugged long ago as production declined. Most wells in Kansas are stripper wells, meaning they produce less than 15 barrels of oil or less than 90 MCF of gas per day. By contrast, many horizontal wells in Texas and Oklahoma produce north of 500 barrels per day.
Striper wells have their place in our energy mix. They make up 7.4% of US oil production. Stripper wells also disproportionally contribute to methane emissions which hurt the environment. The current administration is attempting to curtail methane emissions, putting financial stress on small operators and may make many stripper wells uneconomical. Once a well is uneconomical, it is plugged, and mineral owners no longer receive royalty payments.
Kansas oil wells account for 1.1% of US oil production and 0.5% of US gas production (source: ShaleXP).
A Brief History of Oil & Gas Development
in Haskell County, Kansas
Haskell Couty is one of the primary counties that sit atop the Hugoton gas field. The Hugoton gas field is the largest and most productive gas field in Kansas, and as a result, the county has a significant history of both oil and gas development.
The development of the railroad and the oil and gas industries significantly impacted Haskell County’s economic prosperity. This was especially important during the 1930s. After the Great Depression and Dust Bowl, Haskell County also endured a significant drought between 1930 and 1937.
Many farmers and residents would have been forced to leave their land without oil and gas development. This continued until the 1970s when production declined.
Modern Oil & Gas Drilling
Haskell County ranks #2 in oil production and #4 for gas production, but the development is quite small compared with other areas of the country with much better potential.
In 2021, there were only 18 drilling permits in Haskell County. The other top-10 oil-producing counties in Kansas have a similar number of permits. The typical well in Kansas produces less than 15 barrels of oil per day. By contrast, many counties in Texas have wells that produce more than 500 barrels of oil per day.
It’s really easy to see why Kansas sees very little new oil and gas development these days. Today’s oil and gas exploration companies are more interested in drilling in the shale basins where fracked horizontal wells generate vast amounts of oil and gas.
How We Value Mineral Rights
There are many factors that play into the value of mineral rights. These include location, producing vs. non-producing properties, current oil and gas prices, well production figures, lease terms, and even the operator of the well or wells. We also look at the risks of buying and owning minerals that you are interested in selling.
Minerals in the hottest shale plays are more valuable than those in older fields with conventional wells.
Producing vs. Non-Producing
Producing minerals are often worth more than non-producing minerals because they are generating revenue.
Oil & Gas Prices
When oil and gas prices drop, revenue drops, and sometimes operators are unable to continue operating the well.
Highly productive wells (and off-set wells) can increase the value of your minerals.
Favorable lease terms (such as a 25% royalty reservation) positively impact the value of the leased minerals.
A small number of operators are unethical, and their reputation automatically devalues your minerals.
Where We Buy Mineral Rights
We buy both producing and non-producing minerals in all oil and gas states. However, we are especially interested in Texas and Kansas mineral rights.
We even buy minerals in more obscure states, such as Michigan and Illinois, which produce a very little oil and gas compared to other states.
Why People Sell Their Mineral Rights
I am putting my affairs in order. I don’t want to burden my kids with the hassle of transferring ownership and managing small mineral rights. When my sister passed away, my niece and nephew had to hire an attorney to help them with the minerals. I don’t want my kids to go through that.
I inherited my mineral rights so they were sentimental, but I don’t really want to bother with managing them and filing extra tax returns. I decided to sell and use the money as a down payment on my house.
I had no idea how fast the oil production would decline. My checks are only 20% of what they were a few years ago. I should have sold my mineral rights when the wells were brand new and still generating huge royalties.
My oil wells have been producing for decades and the reserves are almost depleted. Once the wells are plugged, the value will be significantly lower. I’d rather cash out now.
I inherited mineral rights, but don’t want to be involved with fracking and fossil fuels. I would prefer to support renewable energy and do my part to reverse climate change.