Lea County Sections 5, 19

New Mexico Mineral Rights Lea County, NM
1

We recently inherited 80 NMA acres in E/2 Section 5, Twp 13S Range 37E and 20 NMA acres in NE/4 Section 19 Twp 24S, Range 35E. Our properties are not leased. Does anyone have information on on per acre selling prices and any activity going on in these areas.

2

On the 13/37/5 interest, there is not a lot of activity going on.

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There have been no new leases issued in Section 5 in many years. There have been a few mineral conveyances, but none to traditional mineral buyers. You would be hard-pressed to sell this interest for a significant amount of money. The best chance would likely be a national listing service.

3

Thank you. What about section 19? What activity is going on there? We’ve gotten some calls from interested buyers on this property. Any thoughts about NMA prices?

4

MRO has permitted 5 wells in the NE of Sec 19 of 24S 35E. I think they set surface casing on at least the first one, API 3002544666. I believe they got approval for forced pooling of the BoneSpring/Wolfcamp in that unit (NE/4 of Sec 19 and the E/2 of Sec 18). See below.

Contact Marathon and get leased would be my suggestion. I would guess you are looking at 10k/NMA for bonus and 25% royalty. Lease, don’t sell.

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5

Thank you very much for your reply and the information you provided. You’re the second person today that told me about Marathon and the forced pooling in this area but we have not heard from Marathon.

I’m wondering why Marathon hasn’t contacted us? This property was recently granted to the beneficiaries of a trust that was dissolved in June. I wonder if it’s just a matter of timing. Also, there was an expired lease on the property that expired in August this year.

6

You need to contact Marathon. At this point you have way more incentive to contact them than the other way around.