I have a little over 10 acres, currently there is one well holding production by Ovintiv - Deskins 1H-7X.
Wanted to know about any new wells, and what is a good or fair price.
Be aware that most offers will be a discounted cash flow for a certain number of years of your current well, not the full life of the well or the potential for future wells There are permits for three infill drilling to the south of you in 19/30 by Eckard. There are also permits to the west of you in 12/1-8N-6W bu Mach Natural Resources.
Buyers want to make a profit on any acreage they buy. You have to decide if you are willing to wait and know that there is risk of when or if they might drill. You can sell now but always ask for more than they offer as their first offer. You can also sell some and keep some. Your current well has over 50% of its life left to go to recover its reserves.
Last month’s payment was only $263.xx on 10.22 acres, first offer was $4000/acre, 2nd was $5000, have reached out to a 3rd but they are still evaluating.
I’m curious what others have received nearby, or what might be top $$. Obviously they are offering more than DCF.
Looks like competition!