You’re welcome Rock Man. Hit me with an easy question why don’t you? LOL! I have no clue, but for $120/bbl WTI pricing maybe that would help?
PS - I really think companies are focusing on conventional geologic formations with unconventional technology, which seems to me to now be conventional technology?
Ralpr
Good Afternoon,
My family and I have 2 areas of land to LEASE not sale in DAWSON county there are 4 of us, we have 240 acres in section 2 block 35 T4N, we have had wells on this land before, just not drilled but about 5000 ft so I know there is oil there, plus we have 160 acres for lease it is located at section 28 block 35 T5N, we are open to lease all together or by themselves.
please contact me on here or at marc.rogers33@yahoo.com
In Response to the individual with 15 mineral acres in Block 48 in Pecos County.
Block 48 is an active area that is getting more active all the time. Multiple operators drilling long laterals in multiple benches / target intervals.
First off, I would never tell someone to sell their minerals. But everyone's situation is different and when you are looking at a "hard" $360,000 like you are (pre-tax), the numbers make keeping ones minerals difficult to do.
Your decision comes down to present day money versus future money. And future money is impacted by the unknown timing of when wells will be drilled, what prices will be for O&G&NGL's and other issues beyond one's control. Plus the payout from these wells is spread out over 20 to 30 years per well.
Here is an example of what your 15 acres would get assuming you were in a 320 acre drilling / producing unit. Assume a 600,000 BO EUR well (not complicating this with gas and oil volumes right now).
Your 15 acres would work out to a 1.172% net revenue interest assuming a 25% royalty.
Assuming $65 per BO, the 600,000 BO (which will take 20-30 years to produce) will have a value of $39,000,000. Your 1.172% would worth $457,000.
Now assume four wells per bench in this unit - so your interest is worth $1,828,000.
Now look at 1-2 more benches / targets with similar oil potential.
So is getting $360,000 now (pre-tax) worth more than getting $1.8 to $3.6+ Million over the next 20-30 - 40 years (pre=tax)?
This is the tough decision that you have to make as to selling minerals.
One more wild card - if oil prices go up into the $80 to $100 range, increase the potential revenue by another 25-30%.
Plus add in gas and NGL revenues.
But if oil prices drop back to the $30 to $40 range, it may be difficult for operators to drill more than one well. And the rest of the undrilled resources will sit there waiting for better prices and drilling.
Long term good for family and descendants - not good for you present day.
Tough decision.
If you are really wanting to sell, I would hold out for higher per acre number. Just my opinion on that.