Just received a new offer to buy, even if leased, in NE4, N2 SE4 of Section 33, Township 245, Range 36E for $24,000.00 Per Net Mineral Acre. Wondering if anyone might enlighten me as to what is going on…The company is Shamrock Royalty Co./President Michael P. McNamara
I don’t think anything of note is going on. You are on the outside (Eastern) edge of the Delaware Basin, and this just means that somebody (Mr McNamara or whoever he will flip to) is willing to bet that Matador or whomever will drill up your acreage with wells at some point.
They are willing to pay $12k per NRA for the right to make that bet. (i.e. 24k per mineral acre assuming you are leased at 25% or you are unleased and they can lease it at 25%). That will take > 2 hz wells drilled in the E2 of Sec 33 for that to be breakeven for them.
That doesn’t seem like a great bet for them, but at some point if you have money to bet you have to bet it somewhere, so it’s just a matter of whether or not you want to be on the other side of that bet.
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