We have received an unusually frequent burst of purchase offers for our mineral interests in Eddy county over the past several months. Only one lease offer so far: from Cazador O&G of Midland, about whom I don’t see much information online. We’re not selling, but would be happy to lease on good terms.
I assume there is interesting activity nearby this property spurring all the phone calls from landmen I’ve been getting(?), but I need an education in the tools of researching such things. So far my experience in this industry has mostly just been in accounting for royalties already in production. This is only the second time in several years I’ve had to be concerned with negotiating lease terms.
You are on the SE edge of the fairly established Yeso trend. Map shows cartoonish guess at where there is Yeso potential in this area. And shows current rigs and HZ wells drilled in the last 3 years. There is a lot of blank Yeso space and just a few rigs running, so it seems like slow burn, but its definitely worth something.
Wells next door in Sec 23 were drilled last month. So a lot of things going on nearby. For publicly available info try the NMOCD GIS and NMOCD permitting search. I guess. I get to cheat with a pricey Enverus account.
I’d think preference would be to lease to operators. Silverback, Redwood, Spur, etc. I doubt you would get much bonus, and they probably won’t offer 25% royalty. But better to go to the end user, IMO. Obviously if operators aren’t trying to lease you it calls into question how likely it is that your acreage is drilled in near future.
