section 4 township 23 S R28E… what’s going on here? Worth 8k per acre? Tell me what you think. Thank you!
Here’s a map of the legal description you provided. There’s heavy activity to the south of you. However, around where your legal description is, there’s a drop off in activity. There are wells in the area, but they don’t perform as well as the wells to the south. Not too sure about the worth since it looks riskier. Happy to provide more information.
What’s your lease royalty? Are you included in the newly permitted wells?
Where do you see newly permitted wells? I have 3/16th royalty grandfathered.
April 2018 in the S/2.
Did you get a better sense of value?
There should be more activity there in the future.
There were some permitted wells in section 4 T23s R28. They are with Marathon. APOLLO FEE 23 28 4 WD No. 002H APOLLO FEE 23 28 4 WA #005H These are east-west 1 mile Hz in the South half and are 320 acre pooling.
Also, there is a Pooling Order by the OCD for Novo Oil and Gas in the E/2 of section 4 and E/2 of section 9 on a north/south 2 mile HZ. In the Wolfcamp.
There may be a conflict there between the two companies but they are obviously interested in the area.
Chevron has drilling permits and pooling orders on some 2 mile HZ wells that are South to North in the East Half Sections 10 and 3 in T 23S R 28E.
All I can say is that the area north of State Road 31 between Carter Road and Donaldson will be heating up this year into next year.
Hi folks,
I wanted to check-in and see if anyone knows anything with this. I saw a bunch of wells permitted here but no reported production yet. What would you think per acre this would be worth in the s/2?
The new Novo Goonch wells came online from Oct-Dec 21. Its a lot of wells. 11 new producers and the 214H well that came online last Nov. See table below. Along with a guestimate of how much revenue that is at 3/16th royalty to the owner of a mineral acre for Dec.
Note: These wells are only Wolfcamp, there are BoneSpring wells to be drilled also. This revenue is going to scream downhill from here as the wells decline. (I mean, yeah, you’ll get some boost from pricing but this is crest of the wave).
What do I think a mineral acre leased at 3/16 is worth in the S/2 of Sec 4? About 35-38,000 per mineral acre. Effective date Feb 1, 2022. YMMV.
Somewhat depends on where your acreage is specifically located. I just assumed in the entirety of the S/2 of Sec 4. In which case you should be getting paid by Novo for the 214H well for the last year. Which seems like the maybe isn’t the case. If you provide more detail can narrow it down further.
Wow, Nmoilboy, that is very nice of you to analyze this!
I have a little over 3 NRA according to the operator. You are correct that it’s the entirety of the s/2 I did get payments from the 214 last year prior to the infill wells being drilled and it was around $700, with a decimal interest of .00048794.
Do you do this sort of thing professionally for a living?
Thanks!
I semi-work as a consultant in an office where this kind of thing comes up all of the time, yes. Pays for the meth. 
.00048794 in a 640.5 acre unit containing the E/2 of Sec 4 and E/2 of Sec 9. Means 2.5NRA in the E/2. (.00048794 x 640.5 / .125). Presumably the same in the W/2? If you actually have just over 3NRA would mean that you have much less in the W/2 of Sec4.
Perhaps you have 3.33 NMA and at 3/16 royalty that is 5NRA?
I would say its worth around $25k/NRA (i.e. 35-38k/nma @ 3/16). So $125k total if you have the 5NRA that I am thinking. Because of the very large number of new/recent wells. That is a guess. It is almost 40 months cash flow which seems kinda high for new wells, but there is also value for the remaining BoneSpring wells, which may get drilled down the line. It may only fetch $20k/nra. But prices seem crazy so who knows.
Novo should be sending you division orders for all of the new wells. Or you should be calling Novo asking for division orders for all of the new wells.
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Facinating thread here, which mirrors some of questions about some old family interests held in T20S R29E. Please advise how to contact you by phone or email, if appropriate.
Thanks,
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Jim,
Simplest thing (from my understanding of a forum rules/decorum perspective) would be to create a new Eddy county post asking your questions about 20s29e. I’d be happy to at least look at that and see if I could help you.
TCB
Thanks again. I’m a complete computer klutz, but will try to become a forum member again. For some reason, I’m unable to use my former password and ID. I much enjoy your well written posts and always learn a lot Best, Jim
NMoilboy
I believe I’m now a certified Forum member, courtesy of prompt Forum help, and will post a summary of my interests in Eddy county, which date back to the 1920’s. I think our last lease in Eddy County was back then with old-man George Getty.