I received a call today from Arroyo Energy Partners regarding a purchase offer for my property in Blk 58, Sec 10 (Pipeline State 10-3). They are talking $15,000 per NMA. Obviously they either know something or is willing to make a future bet. EOG recently took over from Primexx/Jetta Permian. I’m curious if this offer were to materialize is it good? I don’t need to sell but it becomes a bird in the hand situation. Thanks for any input.
Can’t decide if you have a current oil and gas lease and the royalty percentage?
Since this original post sat in limbo for several days waiting for approval, I should clarify that Arroyo contacted me to say the original offer was based on Sec 11, NOT sec 10. They said the offer was $7500 per NMA as sec 10 has limited activity and no permitted locations. I wanted to correct the information as the Arroyo people were very professional in my contact with them.
There is one producing well in a pooled unit (Pipeline State 58 10-3) and Jetta had two permits from 2019 that expired in September. Otherwise no activity. I have a 25% royalty through an original lease with Atlantic Resources. EOG took over 4-6 months ago. They have 7-8 permits in Sec 11. Nothing in 10.
My $0.02. I don’t think I would sell for $3750 pNRA ($7500 pNMA @ 25% roy). Not because my gramps told me to never sell minerals etc but I think it’s probably worth more than that. Not twice that, but more than that.
At $7500 I’m following your gramps advice and not selling. Who knows…with EOG involved maybe activity will pick up in that part of Reeves…
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