Offers in Lea Co. NM 19S 32E sections 22 23 26 27 $23,000 PER NRA is this speculation or something happening soon?
Active leasing in SEC 22 & 27. Two rigs onsite in sec 14 just to the north of 23. Six permits for horizontal wells.
do you know who the rigs belong to?
The Rigs are owned by Helmerich & Payne. They are drilling for Avant Operating. Looks like 24 permits in 14. I zoomed in closer.
thank you very much M Barnes you are always helpful.
To answer your question, IMO it’s speculation.
Pretty sure Avant has 24 approved Grayling permits (for 11/14 Unit). Where the rigs are. Like your acreage that is Federal, so they have to submit an APD to the BLM long before anything shows up at the NMOCD (as a permit). That process with the BLM can take years. There have been no permits submitted for NM 012412 (i.e. you). So I would say it’s speculation, I don’t think it’s possible for anything to happen here “soon” unless I just missed a filing. Encouraging thing is the Grayling permits were approved in 7 months which is tremendous for the BLM. The # of 30 day permit notices going into BLM vs the # coming out of BLM approved is like a 4:1 pace so its often hard to read those tea leaves.
The fact that somebody can convince themselves that Avant is really going to drill 24 wells in this area is how you get a $23k/nra offer. IMO. They drilled 13 Cutbow wells in the SE corner of 19s32e and while the first batch were pretty bad, the second batch have been pretty good and overall it looks encouraging. Still, that’s 13 wells and not 24. It is always possible that somebody knows EOGs specific plans here. Assuming it’s EOG that has the deep rights for your lease.
Idk, if I recall you said you sold 18 months ago at $20k to a guy who likely isn’t a long term holder, so then $23k today seems to make as much sense. Closer to development. Less places to drill. Shrug. Maybe I’m remembering incorrectly.
As always thanks for your response and yes you have a great memory! I was thinking about you when the NCAA Football Championship game was being played of course i was rooting ND