Oil, Gas and Water Deals Impact Property Values in New Mexico and Texas (Water and natural gas big business!)
OIL, GAS AND WATER IMPACT PROPERTY VALUES in NEW MEXICO AND the PERMIAN BASIN (NEW MEXICO AND TEXAS) 9/27/2018
First we share with you reports on the BLM lease sale that generated record bids for oil and gas lease land in New Mexico near Carlsbad in the Permian Basin. Bids ran as high as $95,000 per acre, documented by the Dallas Morning News. BBAR Inc. (www.benboothe.com) has represented developers and clients on water, oil and gas valuation rights on various properties, and we see sales in excess of $100 million in this area. BBAR Inc. of Albuquerque, N.M. is involved in appraisals and have done environmental and feasibility studies. We are the "Go To" firm for valuations and feasibility studies in this industry. It is often said: WATER IS GOING TO BE MORE VALUABLE THAN OIL. We believe that and are spending more research and time in water valuation, water rights and uses and sources, of water and the value of difference "uses" and demand.
PERMIAN BASIN, CHAVEZ, LEA AND EDDY COUNTY, CARLSBAD, AND JAL, NEW MEXICO
See the following local report in PB (Permian Basin) Oil and Gas Magazine:
BBAR Inc. (Boothe and Associates) observed confirmation of sales, now announced by newspapers, that showed that one of our friends and client (Beckham Ranch) was a part of a $93 million transaction on 123,000 acres of ranch land in New Mexico with access to 11.6 million barrels of fresh water rights annually. NGL Energy bought the Beckham Ranch 36,000 acres in Lea County with 9.6 million barrels of annual fresh water rights along with the McCloy Ranch (87,000 acres in Eddy and Lea Counties, with 2 million barrels of annual fresh water rights.) Note that the recent news report confirmed this sale of New Mexico properties.
We have had some experience in oil and gas properties, properties where water is an important part of value, and have developed models for valuation of water and value changes based upon use.
HOW MUCH IS YOUR UNDERGROUND WATER WORTH?
“Our model for valuation and projections for water rights, especially for water to be used in oil and gas production, are some of the most up-to-date and useful tools investors, buyers and sellers have access to. We are glad to report increasing interest in water and believe in the long run that it is our most valuable commodity,” said Ben Boothe, CEO, and appraiser, for BBAR Inc., Albuquerque and Fort Worth. "We specialize not only in real estate values, but also in water value, oil, gas, equipment and real estate valuations as well as ranch and farm properties and equipment,” said Boothe. (www.benboothe.com).
SAN ANGELO, TEXAS
BBAR Inc. has completed extensive studies, feasibility studies, and valuations on oil and gas properties, as well as corporate buildings, equipment and support items for the oil and gas industry in the San Angelo, Texas, area.
Our most recent work in this area included properties with projected valuation and feasibility of over $47 million in annual revenues and capitalized values substantially higher at current petroleum prices.
“We have provided valuations, inspections, and feasibility studies for oil and gas development and production companies planning to expand. Our contacts include potential investors, current operators and borrowers and lenders who accept and rely on our reports,” said Boothe, president of www.benboothe.com.
South Central Texas and Barnett Shale near Fort Worth.
Our consultations with hydrologists and requests for feasibility and consulting reports that address optimum use and value have impacted farmers, investors, drillers and land owners in these areas. Some farmers are selling water instead of crops, and selling energy, through solar panel fields instead of wheat, corn, cotton and milo. The net results can be most impressive. We can do those financial studies for you.
WE WILL PROVIDE PROMPT SERVICE, BROAD RESEARCH AND REPORTS TO MAKE YOUR TRANSACTION HAPPEN.
DO YOU HAVE PROPERTY THAT HAS UNDERGROUND WATER? YOU MAY HAVE MORE VALUE THAN YOU THINK. LET US DO AN ANALYSIS AND VALUATION, AND WE MAY ALSO HAVE OTHER IDEAS THAT CAN BE PROFITABLE. A FEW YEARS AGO, WE MET A FARMER ABOUT 30 MILES SOUTH OF SAN ANTONIO. THE CITY WANTED HIM TO STOP FARMING HIS LAND AND JUST SELL HIS WATER TO THEM. AFTER WE STUDIED HIS FARM AND WATER RESOURCES, HE AGREED, SAYING, "I CAN MAKE MORE MONEY SELLING WATER THAN FARMING MY LAND!"
We have seen other instances where farmers and ranchers add solar panel fields to otherwise less productive lands, creating a new source of income and tax benefits. We do not sell solar panels, but we can show how different uses of land resources can produce more income, in this modern changing world, where energy is king. They become farmers of the sun, letting solar panels convert the sun into energy and money rather than plants or animals. Saves huge expenses for equipment, tractors, labor, weed prevention, on and on. The net comes out nicely for many.
As this newsletter reports some of our other clients, it shows that with a good study and appraisal, you may be able to sell your land (or water rights) for far more money than your farm or ranch would otherwise be worth.
Why? Cities need water and energy. Counties need water and inexpensive energy.
Sell your water rights or water production, then put solar fields in and sell the energy to local companies, or back to the grid. Oil companies need water and energy. Natural Gas Fracking Drillers need water and energy. Humans, beasts and farmer/ranchers need water and can sell energy. Water, in our opinion, is to become more and more valuable. Energy drives everything.
Call us to see what yours may be worth! Call us again to ask us how to profit from your water.
CONTACT INFORMATION FOR FURTHER INFORMATION:
PHONE: 817 793 1484
Ben Boothe, for reports that you can rely upon. 30+ years experience.