Had several offers lately have ORI on 2320 acres all of section 23 township 19 all Sec.26 200 acres N2 SW-W2SE Section 22 township 19s and 360 acres Northeast and Southeast of Section 22 19 s all range 32 E we each have .08333 of 1% what would NRA be and is it common that they want to see EOG pay stub to verify owner interest ? I dont think anything happening in this area but could be wrong. It is Pony oil asking for stub.
Most buyers will ask to see a check stub to verify the interest. I can’t tell by your message exactly where your minerals are located, they appear to be in Township 19 South, but you don’t list a range. The value of them could vary greatly depending on the range. Additionally, if you have the decimal and well name from a well that you are being paid on, could pretty easily back into a NRA. If it is actually .08333 of .01 on all 2300 gross acres, then I’m coming up with roughly 15.33 NRA.
I put the range at the end it is 32 East thanks for quick reply we sold half our interest 4 years ago when oil price was 50 i dont believe they will even match that dont know what they will give but rarely ever top price.
It’s common for buyers to ask for stubs to verify ownership and title. The offers I got to sell my minerals in any state were much higher 4-5 years ago than now. You stated you have an ORI. That’s a royalty interest, not a mineral interest. If I were to choose to divest one of my ORI’s I’d take into account how many years of net revenue the buyer is offering. Also, WilliamB joined the forum and made his first post the same day as your post. I’d be wary of anyone steering you to a certain buyer.
Yep. 1/12 of 1% ORRI in NM 012412 is 15.47 NRA. Gonna ask for a stub as part of DD to help confirm/verify title and that EOG sees it the same way as they do.
Since you just have old vertical wells and the value would be derived from hypothetical future hz wells don’t base anything off your current net revenue. I’m sure you got that part covered.
It’s not the greatest acreage in Lea County and I don’t see anything going on there, but there is no reason to think that acreage will not eventually be developed with horizontals. The Chisholm/Earthstone “Diamondback” wells in 24/25 are good in the 1st BS/2nd BS/and 3rd BS.
The one thing that has changed in 4 years is that 6000 more hz wells have been drilled in NM and have given a much clearer picture of what zones will work in what areas. I’d say your acreage looks better today than 4 years ago. Not saying you will get the same price, but oil is still $75 and it looks like you should eventually have 6-8 wells per mile wide unit in this area. Might take 20 years, but still.
Say 7 hz wells per 1280 unit. At 600kbo each. 4200 kbo per unit. Or 7612 kbo per 2320. Or 492 bo per NRA. Times say $65 per bo. $32k per NRA in the next 40-50 years. Most of it in the next 20 years. So lets call it 10 years on weighted average. 15% discount rate. 32000 * (.85 ^10 )= $6300/NRA. If one wants to pull a mid-range number out of their butt and pretend that it was based on math. Making sh-t up, one of my core competencies.
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I thank you both for your input and I thought the same thing as you Diesel about William Bs post coincidence I dont think so. NM Oilboy I have always trusted your opinions more than anyones on this forum not really looking to sell. Pony oil guy " says" they are not flippers . I might have 20 years left on this earth if im lucky. YOU are the man NM and this forum is a pleasure with good honest people like you Diesel, Martha and many others God Bless you all !!!
Cheers
Pony isn’t flippers. At least not in the straight up one dude in an office trying to buy for $1 and sell tomorrow for $1.2 and simultaneously close both deals. They will hold it, aggregate it, then probably sell it all down the road. Almost assuredly to somebody who is friends with JP Merritts daddy or similar. If I was a cynic and judged people by their company bio pic.
20 years can be a lot of life. Not so young myself anymore. I mean heck if you have never been to Angkor Wat or want to see Antarctica or the Galapagos then nothing wrong with selling for a fair price and get busy living. If you don’t need $ or its a family legacy then it will be worth more to you or somebody related to you down the years.
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