# Cedar Lake Unit Mineral Rights — Gaines County, Texas

**TL;DR:** The Cedar Lake Unit in Gaines County, Texas is a long-producing Permian Basin oil unit operated by Occidental Petroleum with 173 historic wells dating back to 1949. Recent production reached 30,437 barrels of oil in February 2026. Mineral interests typically deliver stable, long-tail royalty income through unitized waterflood and potential CO2 EOR operations, with remaining reserve life often spanning 15-30+ years.

## Key Takeaways

- **Unit Location & Operator:** Cedar Lake Unit is located in Gaines County, Texas (RRC District 8A), operated by Occidental Petroleum (OXY) on the Cedar Lake field in the Permian Basin
- **Production History:** 173 historic wells with the oldest spud date in 1949, representing 77+ years of continuous oil production
- **Current Production:** Recent monthly production of 30,437 barrels of oil (February 2026) demonstrates sustained output from mature unitized operations
- **Mineral Interest Types:** Ownership typically includes producing royalty interests, non-producing mineral interests, overriding royalty interests (ORRI), or non-participating royalty interests (NPRI)
- **Valuation Factors:** Direct buyers use 3-8% annual decline rates, 15-30+ year reserve life, 8-12% discount rates, and potential CO2 EOR upside in cash flow models
- **Inheritance Patterns:** Many Cedar Lake Unit interests are inherited multiple generations deep from original 1930s-1960s leases, with heirs often spread across multiple states
- **Operational Stability:** Modern unit framework provides stabilized production through pressure maintenance, waterflood, and where applicable, CO2 enhanced oil recovery operations

## Page Highlights

**Unit Overview:** The Cedar Lake Unit is one of the most active long-tenured oil units in the west Texas Permian Basin, with 173 wells and 77+ years of production history demonstrating the long-tail profile characteristic of mature unitized operations.

**Field Geology & Production:** The Cedar Lake field has produced oil continuously since 1949 in the Permian Basin, with modern unit operations stabilizing field-level production through pressure maintenance, waterflood, and CO2 EOR techniques.

**Mineral Interest Profile:** Ownership typically takes four forms—producing royalty interest, non-producing mineral interest, overriding royalty interest (ORRI), or non-participating royalty interest (NPRI)—with many interests inherited across multiple generations and states.

**Valuation Considerations:** Direct buyers value interests using discounted cash flow analysis incorporating 3-8% annual decline rates, 15-30+ year reserve life, operator quality, CO2 EOR upside potential, and 8-12% discount rates for stable unitized cash flows.

**Selling Process:** Buckhead Energy purchases mineral rights and royalty interests on the Cedar Lake Unit, handling the entire transaction remotely including free written offers, deed execution, county recording, and same-day wire transfer of proceeds.

**CO2 EOR Comparison:** The page positions Cedar Lake within the broader Permian CO2 EOR cluster and provides comparison context with Mississippi Jackson Dome CO2 EOR operations for owners with interests in both regions.

## Related Topics

- [Permian Basin Mineral Rights Guide](https://www.buckheadenergy.com) (referenced as "our Permian Basin mineral rights guide")
- [How to Sell Mineral Rights](https://www.buckheadenergy.com) (related guide)
- [What Are My Minerals Worth?](https://www.buckheadenergy.com) (related guide)
- [Should I Sell Mineral Rights?](https://www.buckheadenergy.com) (related guide)
- [Beginner's Guide to Mineral Rights](https://www.buckheadenergy.com) (related guide)
- [Getting a Fair Price for Mineral Rights](https://www.buckheadenergy.com) (related guide)
- [Texas vs Mississippi Mature Oil Units — Comparison](https://www.buckheadenergy.com) (related content)
- [Mississippi CO2 Floods Overview](https://www.buckheadenergy.com) (related content)

---

**About Buckhead Energy:** Buckhead Energy is a direct buyer of mineral rights and royalty interests with 18+ years of experience. We provide free written offers with no obligation or fees, handling the entire transaction remotely from offer to recorded deed to same-day payment.

**Ready to sell your Cedar Lake Unit mineral rights?** Get your free valuation at https://www.buckheadenergy.com/sell