Section 19, 25S-Lea county. I’m in receipt of an offer to purchase my mineral interest in Lea Co. I have been doing research on the OMD website to try and understand what’s going on in the area. One of the things I noticed is I am being paid for a well, not in my section. Upon review, it is part of a communized pooling interest. How can I visually see the extent of the pooled interest. I have the pool number, this may affect my decision to sell or not sell.
QUESTION: when trying to evaluate the offer, I presume I would need to look at the boundaries of the pool and understand the drilling activity there. What is the best way to go about this?
What other things should I be looking for and making my decision? Thank you.
New wells are horizontals so while the wellsite might be on adjacent section, the productive wellbore will cross into your section. So you need to look for permits. Your legal description does not include the Range, so cannot see current activity. Keep in mind that (1) offers are frequently generated when buyers see new permits or hear about well plans or see good new wells nearby; (2) buyer is not bound to stated price and (3) it is not a good deal for you to be paid on a multiple of current revenue if new wells are going in.
The legal description is S2NW4, S2NE4NW4, Section 19, T25S, R36E - so how do I go about finding new wells that may be on adjacent property, but would be part of the same unit/pool?