Crooked Pine Lease ORRI
Lot Number:4
Start Time:6/30/2022 7:30:00 PM
Bid Count:3
High Bidder:
Starting Bid:$100.00
Bid Increment:$250.00
Current Bid:$10,000.00
Bidding complete

6/29/2022 - Added just-received Revenue Statement for June.  Click on the Documents tab for the statement.  This check verifies the $325/month estimate.

5 months of Production:
$96,304.75 / 53.57 NRA = $1,797.74/NRA
$1,797.74 / 5 months = $359.55 /NRA/Month

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This ORRI is in the Crooked Pine Property in Central Canadian County, Oklahoma which is in the heart of the MERGE play in the Anadarko Basin, Section 22-12N-8W. This property is part of *Paloma Resources’ Crooked Pine Lease that encompasses an enormous 1,280 Gross Mineral Acres, or 2 square miles in Sections 22 & 15.  Two new wells (#4 API 35-017-22568 and #6 API 35-017-25569) had first sales in December 2021. The seller believes this property could be sending revenue by the end of June 2022. Three more wells are currently planned - Wells 2, 3 and 5. 

*Paloma Resources is a Houston-based private oil and gas company. Founded in 2004, Paloma is backed by the financial strength of EnCap Investments and Macquarie Americas.

Each Net Royalty Acre (NRA) is estimated to have about $147,390-$185,460 in recoverable oil and gas based on $75 - $95 oil and $4 - $5 gas, respectively. Click on the lease name to see charts in the data package.

Based on existing production on the OCC PUN Reports (see data package) we think each NRA is generating about $290-$350 per month. With 5 producing wells we believe the estimated Royalty Income could be between $725-$875 per month, or $8,700 - $10, 500 per year (see charts in the data package).

The Royalty is 0.125%, or 1/8th Royalty, per Net Royalty Acre.  Currently there are approximately 40 acres available.

Income - Based on March production at $95 oil and $5 gas, net income should be approximately $375/1NRA. 

February  ~$250
January  ~$350
December ~$65 (December was the first month of sales with no gas and just a few days of Oil)

Per the Division Order from Paloma (see data package):
Well Name                         Combined Unit Multiple                  Unit Decimal
Crooked Pine 4MHX                  49.926014%                               0.00522438 
Crooked Pine 6MHX                  47.070475%                               0.00492557

Please note the Decimal Interest in the Division Order is for 53 NRA.  Below is the interest in 1 NRA increments.

Well Name           Original Interest          Total NRA             Interest per 1 NRA
4MHX                         0.00522438                 53.57                      0.00009752
6MHX                         0.00492557                 53.57                      0.00009195

Operator:Paloma Resources
Acres:1 NRA
Legal Description:Sec 15 & 22-12N-8W
Decimal Interest:0.00009752, 0.00009195 per 1 NRA
Monthly Net Income:$325.00
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United States