My relative has a potential offer for his ORRI of federal lease in Township 18 South - Range 28 and Range 29 in Eddy County at $X,XXX per Net Royalty Acre, and I am wondering if his offer is in current market range. Just trying to determine if he is getting a 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 the center of Township 18 South - Range 28 East (Section 15, 16, 17) earlier this year. No production info yet. If those work out then it’s all probably worth a bit more. If you are under those it’s worth a bit more. The further south you are, it’s probably worth a bit more. Township 18 South - Range 29 East 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 it’s 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.
1 Like
We are fortunate to have Mewbourne as one of our drillers/operators on ORRI owned in Township 23 South, Range 30 East, Eddy County, New Mexico. After Devon, Mewbourne has the largest amounts of APIs for our interests, filed with the New Mexico Oil Conservation Division and the BLM. Drill baby drill, indeed. Good luck.
Since we’re talking 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 Township 23 South, Range 30 East. Still awaiting Division Orders on an additional 6 or 7 49er wells in Section 17, same Township & Range. Our attorney is reviewing the Division Orders and verifying interests. That’s the latest on Mewbourne with us.
This topic was automatically closed after 90 days. New replies are no longer allowed.