Are you accredited with 100% of the 40 acres in the new wells? Above you stated, “We have not received any indication from the operators that there was any plans for new wells. The OCD well permitting site shows only the three known wells on that section and no new permits.” Not sure what the unit size is, assuming it’s 1280 and assuming all your acreage is in the new units, 40/1280 x 0.20 = 0.025 in each well. So the 2 wells would have to generate around 310k bbls each at a constant $78 oil price (no idea what your lease states for transportation costs etc.) to reach the offer and not factoring in the monthly taxes paid on the production. You’re in a good spot to be in, I’d reach out to an engineer that specializes in the area to run the numbers for you.
You’re in a good spot to be in, I’d reach out to an engineer that specializes in the area to run the numbers for ya.
No clue where you might find one of those.
Google would be a good place to start, lots of engineers in the Permian Basin out there.
The Directories tab above lists at least two appraisal engineers. Tracy Lenz does mostly west of the Mississippi River and the other one does the east side.
Based on my experience and having her help me in the same area, Tracy Lenz is the best. She really knows her stuff!
Mike you are hurting my feelings, I will have to insist on a pricey side of queso at Sadies in addition to an enchilada plate.
But yes IMO Tracy seems solid.
Well, long story short, the offers went up to 1.728m and we passed. After speaking with a trusted land man in Eddy County we now know that there are a total of 6 permits out that are in our rights. All from Mewbourne who we are told “don’t mess around and don’t cancel wells” There are 2 wells on the north side of our section that have totaled more than 800,000 barrels in the last 4 years and the 6 new ones should be similar in production. Our sections are KLMNOP of I-32-22S-27E. He told us in a year or two we will be glad we did not sell.
What are you waiting for. Future is uncertain. 1.72 million would buy a nice lake house and a boat. It’s not getting any cheaper and dollar is shaky.
Hi oilman. Give these people a pen and let them sign the check.