I’m trying to help a family member with getting any Info I can on the value of mineral rights and trends for Eddy County, NM Township 22S, Range 27E, Section 20. Any help would be greatly appreciated.
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I’m just gonna lay this out:
Depends on size of tract, larger tracts can command higher prices Location of tract matters, sometimes only half of the section will get drilled Is the tract leased? if so, at what royalty?
If oil goes to triple digits, the numbers and outlook change, but generally, hovering around $60, you will never receive a serious, non-fishing offer above $7-7.5K per net royalty acre, in most of the Basin, regardless of what gets spouted here. I would reply, show me the check stub, cuz of course, if the section is permitted for 10 wells by a good operator on a smaller sized unit, that’s also a different situation.
Regarding this specific tract: No permits filed, but many of the leases will expire in 2020. In fact, there’s only a couple permits in the whole 36 sq mi township and range.
Typical purchases that I have seen in this area ranged from $4k/NMA to $10K/NMA. It’s (likely good) speculation that development will move from the good-great stuff in Eddy County (SE, non-fee simple) to the more marginal areas which require way more leg work (a portion of section 20 is inside of Carlsbad city limits, requiring additional costs to potential operator)
If 20-22-27 is drilled, it will get 1 well, maybe 2, to hold the leases. So again, it depends on how much, where and if the tract is leased at what royalty.