I was told a “Great” production value for a 640 acre section in Loving or Reeves county would be $200 million, or, at $50 / barrel 4,000,000 barrels, if generated by 4 wells, would be 1,000,000 barrels per well. Is this a realistic measure to use when evaluating the value of a 1% overriding royalty (ORRI)?
What would be a “good” production value - $100 million? which is 500,000 barrels per well?