Last year we inherited mineral interests in S/4 Section 26, Block C-8 Public School land in Reeves County. As far as I know this property has multiple wells that are relatively new. These wells have been providing substantial royalties as of June 2019.
I’ve read about the declining rate of production in horizontal wells. Last year we received an estimate of the value of our mineral interests in the range of $20 to $40K per net mineral acre. My question is as the production and royalties decrease on this property does the value of our mineral interests also decline? I am trying to estimate how much our mineral interests will be worth in 2-3 years.