T19S-R34E Section 33 Lea County


#1

Hello, our partnership was offered $7000 per net mineral acre a year ago for our interest in T19S-R34E Section 33 Lea county. Is that price accurate today? Any help on valuation would be greatly appreciated.
Thank you


#2

Are you talking about selling or a lease?


#3

Selling


#4

Not sure what the selling price is. Got $725 per net acre on a 3 year lease with an option to renew at 125% for two years last year in a similar section though.


#5

Thank you!


#6

What township,range etc. is ur interest in Russell?


#7

would you share who made he offer?


#8

It was a confidential offer


#9

I guess I will let someone else figure nma acre out we were offered 1.866,000 for 2330 actual acres for the ORRI what would that be?


#10

did you sell?


#11

no


#12

selling part


#13

we would for the right price. I have been on vacation the last 2 weeks Iguess we had another interesting offer while i was gone surpassing the other offer . NO big hurry but money talks would only entertain selling half though.


#14

Oh ok,

I leased some mineral rights there. They are leasing up that area. You may want to look at leasing as opposed to selling for more $ in the long run. But that all depends on one’s independent circumstances.


#15

with $1,866,000 offered for 2330 acres = $800 per acre (approx numbers goes four figures to the right of the decimal )

I’ve heard of offers to LEASE as high as $10k per acre in Lea county but I am not sure if you are close to it or not but that is just the bonus for signing the lease, you would still own the property and if the actually drill? Can’t answer that one either, because it could be crazy money in the long run - does the phrase ‘more money than brains’ sound familiar?


#16

the offer is for ORRI we dont own the land we own 1 percent interest in all the wells drilled on those acres I appreciate any insight available


#17

is it a perpetual ORRI?


#18

I dont know but if thats more valuable I would say so. these companies wanting them think its valuable.


#19

EOG Flays Shale Rivals by posting 19 percent Dividend after beating earnings estimates. I hope this is a good sign for our wells in Lea county.


#20

Excuse the uninformed question, but 19 percent of what?