Wife has received an offer for 7500$ nma purchase on 40 acres that currently have active productive wells! We normally try not to sell but this is beginning to become enticing. Would this offer seem like a fair price for the area? Has anyone else received offers for this area?
More specific location information is required to evaluate your minerals. i.e. Section-Township-Range.
township 35 north, range 71 west, 6th p.m.
township 35 north, range 71 west, 6 p.m.
I don't know what your mineral rights are worth (a landman on this forum will hopefully give you some good advice). But be aware that Chesapeake has 6 new permits to drill in those sections (3 permits have been approved & 3 are awaiting approval. They have already rec'd Confidential status on one of these permits. The ones that you can still look at are all for the Sussex formation.
There are two existing wells under your property, one is producing from the Niobrara shale and the other is producing from the Sussex sand. The Niobrara well is a poor producer as are all of the other Niobrara wells in your area. Most of the previous drilling around you has focused on the Niobrara. The Sussex well is much better and I would expect to see some additional drilling to the Sussex.
I have attached a map showing your minerals and the wells nearby. The numbers posted next to the wells indicate the Expected Ultimate Recovery in bbls of oil from each well (my estimate). The $7500/acre offer is fair based on the existing production, but does not reflect the value that future drilling might generate.
There are numerous drilling permits all around you, but they are permitted for the Niobrara and I don't expect that those will actually get drilled, given how poor the Niobrara results have been in this area.
According to the Wyoming Oil and Gas Commission website wogcc.wyo.gov there are wells drilling now that are targeting the Frontier sand. I believe you will share in those wells. I wouldn't take any offer until the new wells begin producing and you can see what value they might create.
The WOGCC website is free to the public, and I would encourage you to use it to become more informed as to activity that affects your valuations.
Steve, thanks for your input and information. That WOGCC sight will come in handy for future events. All of the these are my wife’s, I am new to all of this.