10N62W valuation

I have 80 acres of mineral rights located at 10N62W section13 S2 NE4. I just had a lease expire that originally had a 20% royalty and 300 per acre lease on a 3 and 2 lease. Looking to sign another lease or possibly sell them outright. What offers have people been seeing for similar rights. I see in T11 there are several well permits very close to this location.

The attached map shows your minerals in yellow. All of the productive wells in the surrounding area are also shown, with the green circles representing how much oil the well is expected to make.

Unfortunately, nothing very productive has been found near your minerals. There are some permits still active up in 11N, but a whole lot more have expired. Based on the poor results in this area, I wouldn’t expect much leasing activity going forward. I’m sure you could find someone to buy them, but I don’t know what price you could expect. If you want to sell them, I would recommend soliciting multiple offers to help you get the best price.

10N62W.pdf (508.1 KB)

Steve, thanks for your reply. I was not sure if anyone had really started to explore in my area yet. It looks like no active permits at this time.

You are on the border between Highpoint and 8 North(Extraction). Verdad and CCRP also have some leases on a smaller scale. Highpoint has applied for permits 2 sections north of you and directly to the west.

Take a look at the Highpoint presentation found here for a little more info on the area. Section 7 that is diagonally opposite to the northeast leased from Weld County at 22.5% and $670 royalty by “Verdad DJ North”. That was a year ago. The good thing is that since it borders your property if you were pushed into a forced pooling situation, then you could use that as a comp to show that should be the minimum offer.

Also note that about 8 miles to the northwest you have the critter creek wells recently spudded with great production. Here is one of them. I think they are also mentioned in Highpoint’s presentation linked to above along with geology information for the area. I hope this helps and I’d be interested in how things go for you. We have a few hundred acres of unleased minerals nearby, but we’re in no hurry to lease.

Thank you far all the information. I will keep you informed. I have had one offer this week for a outright buy of the minerals but only at $450 per acre but I am not interested is selling at that figure.

Steve - Your production numbers don’t seem to show the critter creek wells in 11N 63W. How often do you update your data?

Apparently not often enough! I obviously should have checked for new wells before I sent the map. Thanks for setting me straight.

This revised map was updated just this morning. The new wells don’t have enough history to do any kind of reliable projection, but the wells themselves are on the map. From what I can tell, these are Codell wells on tight spacing. I am a little skeptical of the tight spacing, but give Highpoint credit for trying something new for this area. It might work. Time will tell;

There is only a few months’ production available, but the early rates for these new wells are in the 200-400 BOPD range. The better wells in this area had early rates of 400-600 BOPD. Not that that is anything conclusive at this point. The new wells may not be at peak rate yet.

10N62W.pdf (548.9 KB)


These 3 wells seem to have 12+ months worth of data, but I’m not sure they are on your updated map.(Section 15)




What are your thoughts for tight wells based on those results?

Thanks for updating the map!

They are on the map. Two of them are the circles shown in Section 27. The third one was drilled to the north and it’s circle is in Section 10. I map the circles at the end of the lateral rather than at the surface location.

The two wells that end in Sec 27 are both nice wells, but they are not in the same zone. One is Codell and the other is Niobrara, so I don’t believe this gives much relevant information regarding tight spacing is the same zone. The third well drilled to the north is not a tight spacing well.