Anyone know if there is anything going on up around section 5, township 21 south, range 31east in Eddy County and if so, what it may be worth per NMA? It’s up in Potash Area. I had some offers about 5 years ago, but hadn’t heard anything again until today. Just curious, thanks!
No leases or permits in the northern part of the township in the last three years. The SE part has some horizontal wells.
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Its all Federal land, right? You presumably have an ORRI and no actual mineral acres. Or maybe I am confused. As it stands, IMO if somebody offered you on an NMA basis they are not a serious person. Fwiw.
As @M_Barnes said there is nothing going on there. It’s in Big Eddy Unit and I’d guess XOM won’t be drilling there for a while.
That said, decent well results in the area. Has some value. It’s worth whatever somebody would pay you for it, and I would think that is probably around $10k per NRA. Could be wrong.
Thank you for your reply. Yes, it is BLM land and yes, it is an ORRI on a little more than 400 acres. We got a call out of the blue asking if we’d be interested in selling. The offer is not far from that $10k per. Thanks again.
Alright. If they offered you at $10k per net mineral acre (NMA) they almost assuredly have language in the offer that says something about “the interest equivalent to a mineral acre leased at 25%” which means its not $10k per NRA, its $5k per NRA.
Without some sort of additional language an offer per net mineral acre (NMA) means nothing as you don’t own any mineral acres. That may all sound complicated, but if you’ve seen 1000s of offers, you kind of know the drill. The drill is make it confusing and make the highest sounding offer that you can make. Maybe they offered you pNRA, which at least makes sense. But NMA and NRA won’t be the same thing here.
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