Loco Hills was one of the earliest oil discoveries in New Mexico's portion of the Permian Basin, first developed in the late 1920s, and its long history still shapes how mineral interests in the area should be read today.
Much like Iraan's Yates Field in Texas, Loco Hills represents a much older layer of Permian production than the horizontal boom driving activity elsewhere in Eddy County. Wells here have gone through long decline curves over nearly a century, and newer horizontal development in the surrounding Delaware Basin core has, in places, extended into or near the historic field boundaries.
Old field production behaves differently than new wells
A mineral interest tied to Loco Hills legacy production should be valued off a long, slow decline rather than the steep early curve typical of a new horizontal well. If a buyer quotes you a number that looks like it's using a modern type curve on an old well, that's worth questioning directly.
Where new development and old field overlap
As Eddy County's horizontal drilling has expanded, some newer units have been formed on or near acreage that also carries historic Loco Hills production. When that's the case, your interest can carry two distinct value components: the old field's steady legacy income and separate potential tied to newer horizontal development, and both deserve their own line item in an offer.
Start with the local record trail
A local sale review begins with the county recording office, legal description, deed chain, reservations, lease, units, division orders, payor records, statements, and regulatory well data.
Route local legal questions correctly
Probate, marital property, dormant-mineral law, pooling, recording, transfer tax, regulatory filings, and payor-notice rules differ between Texas and New Mexico counties and belong with qualified advisers.
Midland acquisitions desk
Questions Permian Owners Ask
These answers identify the controlling record, basin fact, title exception, timing issue, or offer term that still needs a documented answer.
Why has the owner's Loco Hills royalty check been small but consistent for years?
Loco Hills is one of the oldest producing areas in the New Mexico Permian, and wells from a nearly century-old field typically decline slowly, producing modest but steady income rather than the high initial rates of new horizontal wells.
Is any new drilling happening near Loco Hills?
In places, newer horizontal development in Eddy County has extended into or near the historic field area. A recent permit check will show whether that's reached your specific tract.
Should legacy and new-well interests be valued together or separately?
Separately. An old, slow-declining well and a new or potential horizontal unit have very different production profiles, and a careful buyer should price each component on its own terms.
How does an owner find out how old the owner's well near Loco Hills actually is?
New Mexico Oil Conservation Division records list original completion dates by API number, and a landman can look up the exact wellbore tied to your division order to confirm its age and production history.
Next property file
Continue the Permian sale brief
County records, deed schedules, producing evidence, and title questions carry straight into each of these connected reviews.
Contact us
Put This Interest on a Permian Sale Brief
Describe the county and state, interest type, producing status, operator or payor if known, recent checks if available, records already gathered, and the decision window.