Increasing Interest in South Dawson

[Caesura]

Hey again,

Just wanted to see if anyone else is getting an increase in lease or buyout offers in south Dawson. Just about two months ago I received a purchase offer of my mineral rights and that as followed about two weeks later with another that was $100,000 more than the previous, both of which I rejected. Watching the area closely I do see several new permits have been filed in the area, two in particular of note is the SM Energy Lease in Block 36, Section 1, T4N and Legacy Reserves lease in Block 35, Section 19, T4N.

It is interesting to watch the evolving heatmap of the county as these wells come online, I was curious about acreage valuation. For instance for the AROD wells with SM Energy, what would be a “fair” or “anticipated” valuation per acre in that same area? I know the standard answer of “whatever you can get!” but as that really doesn’t provide guidance as to what a good time value of money would be, was hoping for some illumination. Perhaps southern Dawson hasn’t been de-risked enough to even provide anything other than a guess but I digress.

Thanks again!

[KyleL]

I think I am just north of you, and I have also been getting an increase in interest. Had someone call me to buy, I declined, and before I hung up they doubled their offer.

[Caesura]

That’s great @KyleL ! I’ve noticed that a lot of these sections that get drilled in Dawson they seem to get about four wells drilled on average. I am really hoping that the Legacy Reserves’ lease “Hendrix A” in section 19 35 T4N performs well to the south of us, not sure who will be taking over that area though since Legacy folded. With the encroachment of wells being drilled to the west, east and south each successful drilling is going to raise the land value and speed up the chances of our area being drilled.

Heck, given how much Martin and Midland sections have been leased out, they will eventually have no choice but to do the same to Dawson.