I was hoping somebody could confirm the average price per acre in this area. I have an opportunity to purchase for $8k per acre. I am being advised there is a well being drilled and I would need to participate.
Thanks.
Can you clarify if this is for mineral interest or leasehold?
mineral interest
Then that is a very good price for the area. It should be noted that this area is likely already in production. If that is the case you will need to determine if the mineral interest that you are acquiring participated in the previous wells, was forced pooled into the current wells, or signed a lease with a depth clause that would release the formations that are currently proposed in this new well.
Barring hearing from someone else on the forum, I will do some research, (time permitting throughout the day) and get back to you on HBP status and recent pricing in the area.
I appreciate it. From what I'm being told by the person selling is they participated in the well that is being drilled "Cleburne 7-12x-13h" so I would have to participate, which is okay. I wasn't made aware of any other production.
Have you participated before?
Also...you'll want to look at http://content.stockpr.com/gulfportenergy/db/184/1367/pdf/VitruvianAcquisitionOverview_vFINAL2.pdf on page 12 to get an idea of the economics.
In review of the area, Iooked back in the record 6 miles in both directions from your property and sampled recent transfers of mineral interest. I found the following reported prices.
11/22/2016 – Section 30-04N-06W - $6,500.00 per acre
11/21/2016 – Section 30-04N-06W - $7,875.00 per acre
11/14/2016 – Section 33-04N-06W - $6,000.00 per acre
10/27/2016 – Section 30-04N-06W - $4,755.00 per acre
9/29/2016 – Section 08-04N-06W - $5,400.00 per acre
Unfortunately, it seems that the information is limited and spotty. I did not review every resource but I did not see/find any per acre prices for 04N-07W.
In regards to the wells I found the following.
Section 12-04N-07W
Jones 1-12 – 640 Acre spacing, Spud 6/13/2001
Jones 2-12 – 640 Acre Spacing, Spud 6/4/2003
Tims #1-12 – 640 Acre Spacing, Spud 6/15/1985
Section 13-04N-07W
Renee 1-13 – 640 Acre Spacing, Spud 11/18/2002
Section 12 & 13-04N-07W
Cleburne 7-12X13H - 1280 Acre Stand-up unitizing the Sycamore, Hunton and Woodford common sources of supply, Spud 9/11/2016.
Hopes this helps.
Agreed. Great source of information are the investor presentations. The SEC oversight means they are less likely to misrepresent.
R Story & Huey, thank you for the information. I seen a powerpoint on Gulfport taking over quite a bit from Vitruvian.
I spoke with my oil guy a little and he is saying the three wells on section 12 aren't included in the sale. I am purchasing mineral interest in the springer and woodford zones.
Can you give me your thoughts on on the $8k price per acre. It looks like the Cleburne 7-12x-13h could be a great producer.
thank you
I'm only going off of verbals right now. The assignment is supposed to be sent to me Mon/Tues so I'll know for sure what I'm getting. For now, I'm being told I'd get from Springer to Woodford.
Thanks
It sounds like you’re getting leasehold rights of its limited to only 2 formations. Mineral rights would be inclusive of all zones. I think you need a professional to review the assignment to see what you’re getting. If it’s leasehold you need to know what NRI you’re getting to know whether $8k/acre is good or not. I personally would not pay that even for an 87.5 NRI. If it’s indeed mineral then the narrative doesn’t make sense because you shouldn’t have the rights to participate.
75 NRI. I would get the interest in the Cleburne well that has a spud date of 9/16 and I believe a completion in February 2017.
That location is liable to be mostly gas if going for the Woodford. Lots of post productin deductions may be possible. Depends upon who is paying for them if it affects your decision. Usually WI unless leaseholders let it slip by in their leases.
Check your paperwork to see if you "get" the Woodford or "to" the Woodford. Check the CLR map to see if you are even in the Springer fairway. Always ask yourself why someone wants to sell....what do they know that you don't know. If you both know the same data and are happy that is one side. If they know more than you, then proceed cautiously.
That is a terrible deal. $8,000/acre and a 75 NRI? This acreage is not the most lucrative part of the SCOOP. It’s much grassier then the good parts which means it’s more expensive to produce and it’s less total revenue at the end of the day. I can’t tell you enough how much you shouldn’t do this. Friend me if you want more details. Friend M Barnes if you want a different perspective.
Agreed. This has quickly become absurd. First this was unleased mineral acreage. Now it has devolved to 75 NRI leasehold less existing wellbores. I fear that next it will be to the Clerburne wellbore only. There are so many questions that need to be asked I strongly recommend that you speak with someone.