Hey all, new to the Forum. We have received offers on this area of Eddy County, New Mexico: Section 7: NE/4. Township: 18 South. Range: 31 East.
Trying to be as informed as possible before a decision is made. Does anyone happen to have information they could share on new activity in the Section/Area that may have spurred the offers, and/or any possible consideration of a value per net mineral acre?
We have Working Interest in producing Devon wells that were drilled in the 80s, but those are in different areas of Section 7 and are lightly producing now days. So, we are unsure if they apply to the offers or how it factors in if it does apply. We are just starting to try and learn this side of things so forgive the ignorance!
I appreciate your guys time and input. Thanks for reading.
I suspect you are getting offers. because you have multiple horizontal wells in many sections near to you.
Matador has two rigs on site in 17S 31E just to the north in sections 31/32,
Mewbourne has permits in the SW corner of Sec 7-18S-31E, but they go west into sections 12/11/10. Having a surface location in your section is quite convenient if they decide to go east and drill into sections 7/8/9. I would not be too quick to sell, if it were me.
Thank you for the reply and information, it was very helpful; and sorry for the delayed response as things were moving along.
At least one of the offers we received (probably both) were due to a company(s), unsure which, desire to drill a new horizontal well.
As such, a potential counter offer (by us) is a higher amount per net acre, landing at $8,500 per (was $7k+), whereas we also keep our two currently producing Devon wells in the Section (the wells will be receiving a workover and are expected to produce decent numbers after the workover). We were also told that there would be no new drilling unless a deal was made to remove us, and maybe that’s true, who knows.
So, with that potential deal in mind do you guys think $8,500 per net acre is too low, too high, or just right for the area? I beleive we shouldn’t sell, but it’s a bit out of my hands. There is still time to adjust the offer and I’m still trying to gather as much info/opinions as I can.
I appreciate yours and anyone else thoughts on the matter. Thank you for your time.
I’m assuming this is someone offering to buy your minerals (with wellbores reserved) for $8500 pnma. How good/bad of an offer that is depends on your royalty rate (i.e. an NMA at 25% roy is twice as much as one at 12.5% roy).
The value of the two existing wells is pretty negligible relative to the risked value of 4 hypothetical Hz wells drilled across the N/2 of Sec 7/8.
My son and I recently received notification from Spur Energy regarding Application for Compulsory Pooling , Eddy Cty, NM. Also received letter with forms to complete on an overriding royalty interest in several leases and/or acreage. The letter states they plan to drill additional horizontal wells and want to pool our overriding royalty interest into the drilling and spacing units that have been or will be established for those wells. This land was inherited and we are in the dark as how to proceed and what questions to ask.
I think that is a good thing. Means they will drill wells. I’m not sure what forms they need you to sign, your ORRI should just go with whoever lease it is attached to, ideally that is a lease that is held by Spur (or anyone who will participate in the wells).
But otherwise, yes you want your ORRI pooled into the spacing units for their wells.
It probably doesn’t hurt to call Spur and ask them if/why ORRI owners need to sign compulsory pooling forms? It may just be that they want to be able to say at hearing (if contested) that they contacted X people and Y supported the pooling.
Hello all! My wife was recently made aware of her ORI ownership with the passing of her Grandfather. We live in GA, so we have no idea what any of this means. I’ve done a small amount of research, so I have a decent grasp of what she owns, but now the question of whether to keep or sell. We’ve been flooded with offers to sell, (the most recent was 11k), but to me this indicates that she has something valuable and worth holding on to.
We did recently sign a pooling agreement, which seemed in our best interest as it added a 3rd well, but still not sure of what to do.
We received our first interest payout, but was a disappointing $19.22. I’m happy to have found this forum for some advice! What information should I provide to the group for additional insight?
Thanks in advance!
For additional context, this is in reference to the following properties:
Jawbone Spring Unit
Township 25 South, Range 26 East: Section 2
Township 24 South, Range 26 East: Section 35
She owns an extremely small percentage of ORRI.
Combined interest = 0.00009414
Thanks again for any insight here!
You are currently getting paid on the old wells. The three new wells that were spud in Sept haven’t paid anything yet. Probably not until 2Q25 at a minimum.
I’m not sure in which well you have the .00009414 interest. But yes, that’s pretty low. So $11k offer may make sense.
But I may not understand.
There is another guy on this forum who owns in this same unit, and he knows more about any of this than anybody else here, he might chime in. In general, IMO, legitimate offers should say X dollars per NRA, if you are getting some of those I’d think a fair price is probably mid-teen $ks per NRA. You may have less than one NRA.
Easy thing to do is just hang out and see what happens when these new wells come online.