How do I find out about the value of my mineral interest in wells located Howard County: Block 35 T1S, Section 12,13,24 & 25, Abstract 517, T&P? There are horizontal lines from Section 13 to 25. There are some wells that were SHUT IN, but are now fully green. Shit In means what?
,
Shut in means the wells could produce, but are not producing. In this example, it’s likely due to waiting on other wells nearby to be completed before turning them on all at once.
If you ONLY have interest in Abstract 517, then the wells in 24 & 25 aren’t actually completed on your acreage. The surface location is in Section 13 to give the wells room to turn horizontal from vertical, like a runway of sorts, but don’t reach the reservoir until Section 24.
The three horizontal wells in 13 & 12 are producing though. Are you receiving payments from Crownquest? If so, this is some funny math but just trust the process, you can multiply your decimal interest in one of the Copper wells by 154,000,000 to get a rough ballpark (this is not an appraised value) on what you could/should sell your Abstract 517 interest for. (or $30k x NRA, if you know your NRA, with NRA defined as 1 NMA leased at 1/8th interest).
NOTE TO OTHERS READING THIS: This multiple only works for this section because of the acreage designation and allocation, plus the number of wells producing vs prospective for this specific section. For example, don’t take this multiple and assume it works for Section 10 two miles to the west. That section has far more producing wells.
So if you had 0.0001945 interest in the COPPER EE 2DR well, 0.0001945 x 154,000,000 = $29,953
But I’d guess you’re also receiving offers to purchase that are more in the $10-15k/NRA range. In my opinion, the much of the market hasn’t caught up to today’s reality of commodity prices and value.
Also, any value on any part of any mineral usually has at least 20% wiggle room, if not more.
“Shit In means what?”
I know what it means for pants 
I’m under the impression that the Steamboat wells (W/2 of Sec 24 and 25) were coming online over the summer.
Shut-in typically means “capable of producing but not producing” (i.e. valve closed, pump shut down, etc) but who knows what it means to the RRC, probably that someone submitted a G-1 or some RRC form with the Shut-in box checked.
As far as the value goes. Whatever is in the W/2 of Sec 24 and 25 is worth a whole lot per acre. The remainder is worth less.
Thank you for your response.
This topic was automatically closed after 90 days. New replies are no longer allowed.
