NRA Purchase Offer

We are starting to see mineral rights purchase offers from Tilden and Copperhead for about 60 NRA of minerals just west of Monument (Lea County) in Sections 11, 6, 29 and 19. We have mineral interests in Texas and the RRC site is fairly easy to navigate to search for permit activity but NM has been more challenging for us so far. Anyone up to speed with any recent leasing or purchase activity in this vicinity? Any operator names that may make sense to search on? Any recent value guidelines? Advise and thanks in advance - RJ

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Do you have the Township and Range? I can pull it up.

Township 205, range 35E & 36E and Township 19S, range 36E - I was able to run a search finally yesterday but didn’t find much in the way of activity in that area. Thanks for your assistance, regards JR

Sold part of my minerals 5 years ago 19s 32e to tilden pure speculation they were top bidder then, last year sold part to Jack Richardson at J Bar Cane LLC for crazy money according to some hopefully NM Oilboy will chime in on your post very smart in N.M. Oil arena. Good Luck.

Thanks for the feedback - one of those parcels had a shallow vertical producing well many years ago but it has been plugged. Current activity must be a deeper horizontal prospect…

If you can be more specific as to what sections are in which Township I could maybe provide some info.

Sec 6, 11, 19, 29 in 19s36e or 20s36e or 20s35e is where I am right now.

Its going to be on the edge of the Delaware Basin/Central Basin platform, so value is going to change quite a bit (downward) as you move to the East, thus location important to know.

Thank you. I have made much progress learning the NM online resources in the past few days and finally have been able to pull some data. Only operating well in any of these sections II can find is 30-025-38058 - vertical gas well spudded 11/06. Full location strings as follows: 20S-35E-Section 11 E/2 (20 NRA), 20S-36E-Section 06 SW/4NW/4, NW/4SW/4 (10 NRA), 19S-36E -Section 29 SW/4 (10 NRA), 19S-36E-Section 32 NW/4 (10 NRA), 19S-36E-Section 19 SW/4SE/4 (10 NRA) - regards

Thanks.

IMO…The 20NRA in sec 11 has fairly new permits on it, makes sense as its the furthest west. It’s probably worth like $12-15k/NRA. The other ones are much more of a guess. More faith in Sec 6 and Sec 19 than in Sec 29 and 32. I’d say Sec 6 is $7-10k/NRA, Sec 19 is close to the same, and Sec 29 and 32 are $5-7k/NRA.

Semi-amateur #s based on “might be fine, might be in the Central Basin Platform and get no wells” coin flip risk analysis (i.e. shrug, guess, shrug).

Thank you very much - very helpful, regards

Tilden makes great offers though we declined. It was hammered in my head to never sell the minerals. So Don’t.

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I came back to provide some info but looks like it’s pretty well covered. Agree that its very fringy lea county. The ole cash now vs potential decision. Good Luck.

“Never sell your minerals” seems a fair outlook. But…if someone (or their predecessors) are in the “never sell your minerals” camp and they haven’t been out there actively trying to buy more minerals, then that’s more of just a scary story or family tradition than an economic theory.

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Hey there. I advised that to a relative, Never to sell way before fracking came along. That relative didn’t heed my words and sold cheap. Had the same interests as we do. Then fracking came along and new life came with it for the majority of our interests. Who knows what technology will be developed next? That is why I posted what I posted. A family tradition indeed.