I am trying to help my mom with an offer she received to purchase her ORRI she inherited. It is located on Township 25 South, Range 31 East, N.M.P.M. Section 27: S/2 SW/4. Section 28: N/2 SW/4. Section: 27 S/2 SE/4 totaling about 160 acres. Percent .25 8/8.
Any help would be truly appreciated. This process is very taxing for my mom, who just doesn’t want to be taken advantage of. Thanks, Cathy
To start, it sounds like it should total 240 acres.
Think about why she would want to sell. If there is ongoing production or the chance of new horizontals, might be better to hold onto them. If she sells, she may have to pay capital gains. If she passes them onto heirs, they will get a step up value and a better tax situation should they want to sell. Maybe someone on the forum can comment on present and pending production. Usually offers come when someone knows something and they want to make a nice profit off of buying. Be cautious.
Hello, is there a Lease number at all?
That is a very odd legal description as it doesn’t correspond with any current Federal lease or lease boundaries.
If its really in the southern portions of Sec 27 and 28 of 25S 31E then that is a pretty good place to be, selling or holding. I’m happy to comment on present and pending production, but I guess I would make sure that we are all talking about the same thing first. So, yes, a lease number would help.
The orange lines are permitted wells with the green being existing wells. Looks like Devon and XTO are going to be running a few new horizontals through your area of interest. Very good area for sure with those operators. I hope your offers are accounting for all of this.
I think she’d make $9,375 combined for every 2 wells drilled through these 3 separate tracts; and with up to 6 benches over the next 10 years, a possible total of $54k lifetime on this interest. Alot is still unknown/undrilled. Alternatively, it would be 4.8 net royalty acres and I’ve seen them sell out here for $4-9k per royalty acre with the higher numbers being in a larger package.