Looking for appx. Value


#1

Looking for approximately value for 160 acres in Section 15. Township 22 South. Range 27 East in Eddy County


#2

Hey.

This is my guess.

I think the 160 acres in question was leased at 1/8 royalty 50 years ago and that lease is still held by production from the Cimarex Forni 1 well. Which kind of stinks as would be nice to sign a new lease, get a bonus, and scale up to 3/16 or 1/4 royalty like other new leases in 22S 27E. But I don’t think that is going to happen.

So, if one owned the royalty on the entire 160 acres, then they would have 160 net royalty acres (160 acres @ 1/8th royalty). Another user commented that he was able to help people sell minerals for > $5k/NRA in 21S 27E, which seems roughly equivalent to here. So that would put the value of royalty on the entire 160 acres at around >$800k.

That all said, my cursory non-landman look at conveyances in Sec 15 would suggest that nobody owns the full 1/8th royalty on all of the 160 acres. There is language that says it covers the 160 acres in the NE of Sec 15, but it looks like it has been chopped up. Perhaps you know exactly how much you own, but otherwise would need to look through county records and figure out what part is yours. And scale accordingly.

Or just look at check stubs from Cimarex and back into how many acres you own? Take the decimal in the well, multiply by 320, then multiply by 8…and that is how many NRA you have.

Hope this helps at all.


#3

Can you refer me to a lawyer or somebody to help me with the closing excetera for help


#4

And I forgot to thank you for looking up the details for this property I really appreciate it


#6

I don’t have any great recommendations, sorry. Maybe start a new thread saying “Need landman/lawyer help in Eddy County” and the landmen or lawyers may come running.