I am entertaining an offer to purchase our royalty interests in Dawson County. Specifically in Sect 9, block 36, T-4-N. On the Railroad Commission site I see that there are a few dry holes in the area and a permit for a horizontal well close by. Does anyone have any info for this area or know what the going rate for royalty interests would be?
Sort of depends on how many acres you have. How much did they offer?
We have royalty on about 13 acres. The offer was over $3000 an acre.
There are producing hz wells two miles south of your interest. The well in your section has produced 57,661 BO since 1993. If a hz well were drilled, would your NPRI pay you back more than the offer in the first year to eighteen months of production? What if multiple hz wells were drilled through your section?
Can you point me in the direction you took to get the production information?
This link should open to the RRC GIS Map Viewer on the well in your section. In the white pop up square, scroll down to the lower left hand corner and click on “production data query (pdq)”. On the new page, adjust the beginning date back to 1993 and click the “submit” button to reveal total production since that time.
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Over $3K an acre on royalty acreage seems like a good offer considering the HZ well to the SW (Trigger 18-19) has been very underwhelming.
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Hello ShellyG, any update on your royalty interest? It seems to be located in a good area and should be worth more than $3,000 per acre. Is the interest located in the whole section or just a portion or the section?
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