I own an overriding royalty intererest in Township 25 South, Range 32 East, N M P M Section 15: All and Section 22: w/2 of e/2 , and the w/2 containing 1120 acres , more or less in Lea County New Mexico.
How do I find on a map? and is it worth anything?
Gary,
If there is no concern over the lease expiring (and your ORRI going up in smoke), then buyers will treat ORRI just like minerals/royalties. Which means they will discuss in terms of net royalty acres. A net royalty acre being how much interest you would get from a single acre that has 1/8 royalty.
For an ORRI, you can figure out net royalty acres by taking total acres x ORRI (as decimal) x 8. So if your 1120 acres has a 1% ORRI, you have 89.6 nra. For example.
In the middle of 25S 32E somebody should be paying you > $12k/nra. I would guess. So, yeah, to confirm what Michael said, its worth something.
Good luck.
Thanks so much this helps a lot! We are starting to get some people asking if we want to sell. so it must be getting hot over there.
Thanks for the map - helps me get familiar with the area involved.
Michael, Solicitation is not allowed on the forum. Thank you for sharing the map, but remember the rules.
Gary,
Your ORRI is in a good area of Lea County, lots of activity near by. You should be able to command a pretty penny if you are looking to entertain a sale. I have seen some pretty sky high numbers on ORRI sales in the past month, however there are a lot of variables you have to consider like permits, current production, operator, etc. In general, your ORRI is in a great area
Best, Cam