we inherited RI for section 29 block 48 t-8-S T&P RR in Pecos. Apache has 2 wells on this property 20+ years old and just sold it to Chevron. Our share is .00586 and we keep recieving offers from $112,000 to $210,000. I have done a ton of research and the property is very close to Reeves county where Apache announced major oil and gas reserves. The current RI only pays $200 a year but from reading, companies are going back with new technology. Can anyone share their insight?
Thank you you in advance.
Mark
Mark - That area is about much more than just Alpine High. It's also in a good area for Wolfcamp and potentially Bone Spring development, both of which are more proven. There aren't any new horizontal permits on your section as of this post but Diamondback and others have numerous permits in all directions from your section. If horizontal wells are drilled across your section you could end up with a very nice monthly check that makes those offers less attractive.
Thank you so much. This is very challenging. I greatly appreciate your input.
It's my pleasure. There are a lot of us on the forum that can answer all types of questions. I'd encourage you post any more questions you have here or in the Pecos County Group. It can be hit or miss as to responses but some good advice and information is found here.
Before I sign final documents here is an update. We negotiated $130,000 for half of the property and our thoughts are we are able to pay off our mortgage and still have upside. We feel like a bird in hand and one in the bush is sound. At Age 57 my risk tolerance is decreasing. It's hard to tell exactly when to take money off the table. If you disagree please speak frankly.
thanks,
Mark D