Eddy county, New Mexico, township 26

#1

I have had offers for the mineral rights on 4 acres of land in eddy county, section 4, SW4 of the NW/4, township 26, range 31 east. I am wondering what is going on in this area and if it is worth holding on to. Thank you for any input. BJD

0 Likes

#2

You may get better answers if you file this in the Eddy County, NM area. When you go to New Topics, scroll down the category list on the left side until you get to New Mexico and then choose Eddy. Local folks watch that category and may be able to help.

0 Likes

#3

You are in a great area. Deciding whether to sell or keep your minerals is a personal choice and depends on everyones situation. Because you are in a good area and you know wells are being drilled very soon, if you decide to keep your minerals you will make more money in the long run. The permits and horizontals have likely caused an uptick in purchase offers coming your way. I am in the industry and I sell interests from time to time in an effort to “Hedge” a little bit. I don’t want all of my money tied up in one asset class such as oil and gas. From time to time I sell portions of interests and invest that money in real estate or equities. Balance is key! good luck. If you do sell you should research 1031 exchanges.

1 Like

#4

I have some minerals in Loving County, but haven’t been getting many offers as of late. What are they offering you to sell?

0 Likes

#5

Thank you very much!

0 Likes

#6

So far, up to $20K per acre

0 Likes

#7

With that many permits Id Imagine you could get a higher price! I’d hold on for more or try to get some more offers from end buyers and choose the best option

0 Likes

#8

Insight please? I’m working to wrap my head around all of this. I’ve received a formal offer to purchase for my fractional ORRI (varies between 5-8%) fir 504,600.00 for NM 0487738, NM 013396, NM 012241A, NM 014118, NM 015318 NM 031649, NM000491,NM 006707, NM017232, NM 015680, NM 015317. So, I’m really pretty clueless. That seems like a huge offer. It makes me think they are in the position to make a ton of money… Is selling a good idea for me @ this point? If I don’t, could this be the making of a Beverly Hillbilly storyline? Also, Percussion Petroleum has recently completed drilling of 2 new wells. ( Weezer 1 and 2) I just sent back those division orders and am very j treated to see what the monthly payments may look like. Does anyone have input for me? Thank you!

0 Likes

#9

Wow. That sounds great!

0 Likes

#10

What section township and range are the Weezer 1 & 2 in and I can look them up on the New Mexico Oil Conservation website. The website is down right now so until it comes back up no research can be done on the site.

0 Likes

#11

Also we received offers up to 3 million for numerous sections in federal leases located in23s r31e. We declined as the income stream from those sections are very nice to receive on a monthly basis.

0 Likes

#12

Actually, it’s wells Radiohead 1H, 2H, 3H, 4H, Weezer 1H, 2H, 3H, 4H SW/4 NW/4 NW/4 SW/4 Section 27, Township 18 South, Range 26 East, Eddy County, NM

My division orders last week were actually for Rose#12 N/2 N/2 S12 T19S R25E

I’m just learning…

Thank you!

0 Likes

#13

There’s no such wells for the Radiohead and Weezer wells. Nice try bud. You sir are a spammer! Also the Rose well was plugged in 2018.

0 Likes

#14

I can send a picture? I’m not a spammer. I live in Tulsa, OK… My grandfather did the accounting for Yates Petroleum, way before they were EOG. The division orders I signed last week with Percussion Petroleum N/2 N/2 S/12 T19S R25E. Property name Rose #12 #2H… All the other things I’ve sent previously I signed about proposed surface use and compensation agreement with Percussion Petroleum for the 4 [Radiohead] and 4 [Weezer]wells. I signed that lease agreement the first of the year. It came via certified mail dated 12-17-19.

I was hoping for some help here.

I’ve no idea why you think I’m posing as something else.

You’ve made two wrong assumptions. I’m also a woman… not a sir.

Thanks,

Jami

0 Likes

#15

Yes, one other thing… even if you google my name… things will come up in the search related to mineral ownership… geez…

0 Likes

#16

I don’t care who you are. I really shouldn’t waste my time, but I looked up wells in New Mexico (the whole state) for Radiohead and Weezer wells and there are no such named wells. Also the Rose wells are all operated by Vanguard and Read & Stephens. None in your section I might add.

This is the last response you’ll get from me.

Adios.

0 Likes

#17

I just signed a lease with SPC Resources for my tract in section 25. Fingers crossed that it will be more lucrative, as it is a non-surface horizontal drilling lease.

0 Likes

#18

Hey Jami,

Long time Artesian, father worked for Yates for 35 years. You are clearly in the title in this area, handed down from Beauford Harper.

In terms of the Weezer/Radiohead wells, I don’t see any record of them being drilled or even permitted. So you should not have gotten any division orders there. However, you are not crazy, Percussion did just apply for pooling order (Case 20370 and 20372) for those wells. I would guess that what you have seen are notices of pooling from Percussion. See Weezer below. Clearly somebody at Percussion likes 15 year old alternative rock music. And maybe somebody owes you an apology.

I own a small override in multiple sections of 19S 25E. You are likely not going to become the Beverly hillbillies. However, Percussion has drilled some pretty good wells up here in what was a sleepy area which has increased our revenues. I did also see that Percussion was trying to sell their entire position, so who knows what is going to happen down the road. Percussion has some 30-odd permits that are undrilled right now, and are operating one rig (probably drilling 20-25 of these shallow wells a year), so if your wells are not permitted yet I doubt you will be seeing any increased monthly checks for a while.

I’ll take a look at the leases you listed and see what is up. Just cause sometimes I get bored and I happen to have access to info from part-time job. I would not rush out and sign anything to sell until you have a good handle on what you have and what might happen. I think there are a lot of times where selling makes sense, but

For frame of reference, what did they show your decimal interest was in the two new Rose wells in Sec 12? (which btw also exist)

Cheers

(Weezer info…)

1 Like

#19

I apologize profusely Jami. I thought you were a spammer because you’re info didn’t show up on the New Mexico Oil Conservation Division website when I searched for Weezer and Radiohead wells. Also I failed to look up Percussion in the search engine and found that yes two wells have been drilled. The Rose #2 and Rose #3 that are shown under section 7 t19s, r26e with the Bottom hole of the wells in section 12 t19s, r25e. Additionally there are 5 new permits in section 7 with bottom holes in section 12. Rose 4 thru 8.

Your Rose 2 doesn’t show any test info on wells 2 & 3 yet just completion info.

Again I humbly apologize for the above posts.

2 Likes

#22

Apologies, but there are not 8 royalty acres in a mineral acre. I mean, I guess there are if you are the one person in the world with a 100% royalty lease. Otherwise, that would be a hard no. This is how you have people thinking grandma’s 4 acres in Loving is worth $1m.

And yes, where Barbara owns property in 26S 31E your minerals will get offered > $18,000nra. Where Jami (or I) own up in 19S 25E, your minerals (unless sitting under a few sections of Percussion production) are gonna get offered 1/6th of that or so. Delaware Basin is a diverse place.

0 Likes