What is likely to happen in this section, given not much production in the portions I own and all the cases pending applications for increased density and multi unit horizontal wells filed by CPRP in 2023.
I have a tiny bit spread across sections 18 and 17, with only 17 producing royalties (from Pappy Titan). Ready to sell 17 at a multiple if revenues from those wells since they started in 2019. Don’t know how to value section 18 rights with no production to speak of (NE/4 mostly, producing wells in other areas currently are 40 and 160 acre units so I assume I’ll get some of those if sec 18 gets 640 acre units)…
You have potential for additional Pappy/Titan horizontal wells in section 17. The current wells have quite a bit of production life left on them. Personally, the offer would have to be pretty high if I were to consider selling that section.
Section 18 has quite a bit of potential given that they are spacing the Black Marker, Horsefly, Sycamore and Woodford at 640 acres. I suspect that you have horizontal wells on the horizon.
Thank you. Under the circumstances, what would you consider a pretty high offer per acre for selling now instead of waiting and collecting on a portion of those 640 acre units. (We only have a single acre spread across the two sections, bought by my grandmother and shared with 5 of us grandchildren).