My relative has potential offer for his ORRI of fed lease in T18S-R28 and R29 in Eddy County at $ X,XXX per Net Royalty Acre, and I am wondering if his offer is in current market range. Just try to determine if he is getting fair price per acre. Old vertical wells were drilled there 20+ years ago but no recent wells so likely deep fracking formations still available. Any suggestions?
Depends where you are. Mewbourne drilled two wells in center of 18s28e (sec 15,16,17) earlier this year. No production info yet. If those work out then its all probably worth a bit more. If you are under those its worth a bit more. The further south you are, its probably worth a bit more. 18s29e has more development activity (drilling and Mewbourne APDs).
Just for the general area, I’d guess a reasonable price is something like $6-7k/NRA. IMO its likely only BS2 and BS3 formations possible, so it can’t be too high end like (way) further south where there are 6+ landing zones.
We are fortunate to have Mewbourne as one of our driller’s/operators on ORRI owned in 23s, r30e Eddy county nm. After Devon, Mewbourne has the largest amounts of API’s for our interests, filed with the New Mexico Oil Conservation Division and the BLM. Drill baby drill, indeed. Good luck.
Since we’re taking about Mewbourne here…the other thread was closed months ago, we finally received Division Orders on 9 49er Ridge unit wells in sections 16 & 22 T23s, r30e. Still awaiting D/O’S on an additional 6 or 7 49er wells in section 17 same t & r. Our attorney is reviewing the D/O’S and verifying interests. That’s the latest on Mewbourne with us.