Yesterday an offer letter came for some interests we have in Eddy County. Section 34 Township 18S Range 25E. 2k an acre on 80 acres. Is this a good offer? Are they drilling a lot out that way? Any input will help.
Can’t comment on quality of offer in this area, but Silverback Operating did permit 6 horizontal wells across Section 35 (to the east) and halfway across Section 34 in December 2023 and February 2024. Section 36 (to the east of 35) is drilled up (Spur Energy - Pinto Wells).
I’d say that is probably a little bit low (of an offer), but it’s real binary. If wells get drilled there, capital IF, then it’s worth a lot more than $2k/acre. If they don’t, it’s worth a whole lot less.
From where I sit, there are a lot of viable Yeso wells to be drilled all along the trend, which is good… but there is one rig drilling it. So one rig on 100,000 acres = a long, long time until you can feel good about your particular 640 acres.
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