My family has fractional mineral rights on 300+ acres in southern Lea County T26S 35E Sec 19/30. Latest production company has gone bankrupt but new owners have several nearby producing wells (Madera). A brokerage company made an offer equivalent to $6000/acre (if we had full rights).
Is there a general rule of thumb here about calculating how much it's worth? Seems like a lot of money, but I know the recent BLM sale brought $13000+ for parcels within 2-3 miles.
Our lease pays 1.5% but production has dwindled greatly, but this offer is worth more than the last 10 years of royalties. I wonder if the new company plans to start horizontal drilling, since it has leases in 4 sectors nearby.
Any insight into the local situation would be greatly appreciated ! Should we accept it, keep the rights or counter the offer?