Does anyone have insight into the current lease price or current sales price per mineral acre in Section 28, Block 55, Loving County?
I received a purchase offer and am trying to determine fair market value.
55 T1 or 55 T2? Or are we in Block 55 of Reeves County? (which would be a frown)
I have some insight but I’m not sure what specifically we are talking about. There is production from Section 28 in either block in Loving.
Lease price? Are you unleased?
Mineral price? Depends on which block but also depends on your royalty rate if you are leased.
Loving is worth a ton per acre either way, but more details would help.
T1, Loving County.
Leased for 3 yrs 2/18. Currently unleashed. Trying to determine if royalties (or our contact info) was lost in the shuffle between Anadarko and Oxy.
@Paul_anglin Block 55 Township 1 is a great location and not entirely sure how your interests could be unleased there. Here is a screenshot of Section 28 (northern section) and 33 below. As @NMoilboy mentioned, either way leasing or selling the money could be substantial. The acreage is certainly drilled up, so I doubt a buyer will give much money towards upside. This would be more along the lines of a PDP valuation, which I would never recommend taking unless it was a last resort. Best times to sell is when there is flush production from operations coming very soon and you have additional acreage that is undrilled. That is if selling was the route you wanted to take. If the interests are in fact unleased, I would accept no less than 25% royalty. Bonus rates could be all over the place though depending on what kind of hardball the operator wanted to play, but still substantial.
Kyle:
Your map is 56 T1 Section 28 and 33.
Paul:
There are 4 producers in Section 28 of 55 T1. Two going north into Section 21 and two south into Section 28.
In theory they have units set up like this, see below. Section 28 chopped into 4 units, with those names/wells shown below (Bobcat 55-1-28, Buckeye 55-1-28, Hawks 55-1-28, Rainier 55-1-28). These wells were all spud in 2017, online 2018. So I don’t know how exactly this works with you being leased in 2018 and that lease expiring. You should call Oxy.
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Ah yes, my mistake and good catch. I guess my comments still stand and as @NMoilboy states, not sure how you’re unleased with those producers in there.
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