Eddy County NM

Looking for an estimated value for a 3.75% ORRI for the following: All of Section 6, Township 21 South, Range 30 East, N.M.P.M., Eddy County, NM, containing 1016.27 acres more or less, bearing NM Serial No. 06793

Moved this to Eddy County, NM

There’s no current production on this land. My feeling unless it’s in the Delaware basin, not worth much.


Brandy, sent you a private message. Assuming I know how private messages work. Which might be a bad assumption.

I’ve worked numerous deals in Eddy Co, NM. The Fed Lease covers three or so sections with only a few HBP wells from the 1960’s. There is no horizontal activity in the area and it’s quite far from the Texas border. I’d guess maybe $500-$1000 if you’re lucky, depending on production numbers, if any.

I trust this helps!

A polite but contrary opinion. Which could be wrong.

XOM paid around $7M for BOPCO’s interests in three big Federal units in Eddy County. $23k/acre. This is in one of them. There are no wells here because it’s under potash, and BOPCO is a bunch of slow-rollers.

It will take time to develop from drill islands, but there is no chance that XTO/XOM isn’t currently working on a plan to develop Big Eddy Unit. Similarly no chance that this Fed lease will be allowed to expire. If you are willing to hold it forever, you’ll get a bunch of wells on this acreage. Forever is a long time. Makes reasonable sense to sell it now when prices are high as I’m sure somebody will pay you for a portion of the birds in the bush. I won’t pretend to know the exact answer, but I’m extremely confident that you would get a multi-million dollar offer (for your 305 nra) if you shop it a little bit.

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Are there any Eddy Co sections that are in the Delaware Basin?

A large portion of Eddy County is in the Delaware Basin. Here is very cartoony version


My mineral rights are in the city of Carlsbad, which by what I’ve read was granted to Santo petroleum to explore and hopefully Drill and find oil. Does anyone know of any progress going on in the city?

I am interested in your comments here. We own the overrides for Section 6, Township 21 South, Range 30 East, N.M.P.M., Eddy County, NM, containing 1016.27 acres more or less, bearing NM Serial No. 06793, and have been contacted by a broker with a potential buyer. Your thoughts about estimated value?


The location of your ORRIs are in a fairly difficult location for most operators to quickly get to and develop. The map below shows the Sec 6 Twp 21 Rng 30 being within the Potash mining area (in brown). Within this area, operators have to take additional precautions and approvals to permit “drill islands” in order to drill wells off of a pad. You can see there hasn’t been much activity due to the additional rigorous permitting required in the area in order for oil & gas operators not to disrupt potash mining. While certain prices that have been paid by operators are quoted, timing of development will be a definite value driver of minerals and overrides. Happy to provide any additional information to provide clarity.

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I would stick by my earlier estimate that its worth something around 7k/NRA. The potash mine workings are directly under Sec 6. Its in the middle of the Big Eddy Unit, operated by XOM. What they paid for the acreage has no direct bearing on your ORRI value, but it’s a pretty good indicator that it will get wells eventually. As Louis says, “eventually” is not nearly as good as “soon”. In this case, eventually will likely be > 5 years and maybe > 10. And it likely won’t get the well density you would see if it wasn’t under potash.

That said, I have no idea what people may offer you. It could range from very very little ("its never going to get developed) to perhaps something high (“its under Exxon and they said they were going to run 50 rigs so I’ll pay a lot and worry about the details later”). Nothing in the mineral business surprises me.

Best of luck.

This Potash you refer to, does it affect S2 of 19S 28E?

Nope. Ore ends about 5 miles SE of there.

Similar map to one shown above.

I have several acres of ORRI for Township 21 South, Range 30 East. NMPM. Serial 06794-2. Which appears to be right next to this. Mine is definitely in the working mine.

Was wondering if you did sell, and will you share acreage price?

No, my family has not sold their interest yet. We have 203 net royalty acres (nra) and the highest offer we have received so far is about $4400 per nra. Still holding out to see if we can get more.

That’s a bit surprising, I’d have thought you would get offered more than 4400/nra if you got a reasonable number of offers. Perhaps people are scared of the potash mine. Or maybe I’m out of touch