New Mexico has been great oil hunting territory for a long time, with the first oil well being drilled in 1922 which led to additional wells establishing the Hogback Field in the San Juan Basin. With the Delaware Basin reaching into southeast New Mexico, the state has substantial reserves in the Wolfcamp and Bone Spring formations. These zones require massive fracture treatments after being drilled horizontally to maximize production.
However, with all of these areas being developed with expensive horizontal drilling and huge fracks, well economics can become challenging during oil and gas price downturns. Many wells in the past that penetrated oil and gas reserves have been plugged and abandoned because they weren’t economic at low prices. We stand at such a time, when mineral buyers and sellers, and oil and gas operators, don’t have a crystal ball to view the future of our industry. Many of us have lived through long downturns, and have minerals that were worth significant amounts of money for a season, only to see those minerals lose much of their value as the industry cycled down.
As you evaluate your overall financial position as it relates to the question of selling some portion of your minerals, we would welcome the opportunity to work with you. You will receive personal service as we research your mineral values, and promptly inform you of our offer. It all starts with you filling out our assessment form.