Perhaps this is related to the offer in section 33, but we received one for even less. Anyone getting calls? Would our section, 8, be affected by the infills?
Thanks! J
Which topic are you referring to with sec 33? Offer to lease or offer to buy?
You have a horizontal in 8-8N-5W already. No extra permits yet. I do see a good bit of infill drilling in 9N-4W and a smaller amount in 8N-4W to your east. Several miles away.
Sorry, yes it is a purchase offer for mineral rights. We are already under lease. Do you think those infill drills impact us at all?
Which infill wells are you referring to?
The infill wells you mentioned. Or are they too far away to have any bearing on us?
The ones I just mentioned are about 6-10 miles away from 8-8N-5W so will not affect you.
What typically happens is that an operator will drill one horizontal well in a reservoir to hold the section(s) by production. If the economics are good, they will come back and drill the infill wells. Any infill on your sections might be with Section 5 since the first well is also with section 5. Your operator is Ovintiv-last time I checked.
Camino drilled infill wells in section 16/21-8N-5W, so someone might have a whiff in the air of what might be coming for your section. It is quite common for buyers to tag on an increased density case for a section and send offers out to every contiguous section. I just put them in my files and wait for actual drilling. We don’t sell our minerals (so far).
Gotcha. Thank you for your time and insights. Very helpful!
Curious of your opinion - with respect to the current market and no imminent new wells, etc, in our specific location do you think $10k/acre would be a fair selling price?
I have found it wiser not to comment on exact amounts for a fair selling price.
As my attorney says, “A fair price is a willing and INFORMED seller under no compulsion to sell and a willing and informed buyer under no compulsion to buy agreeing on a price.” The buyers are usually much more informed than the sellers in this space.
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Understandable. Great perspective. Thank you!