# Loudon Field Mineral Rights in Fayette County, Illinois

## TL;DR

The Loudon Field in Fayette County, Illinois, is one of the Illinois Basin's largest cumulative oil producers with over 400 million barrels extracted from deep Aux Vases and McClosky reservoirs under continuous waterflood operations. Mineral interests are often inherited across multiple generations from early-1900s leases, creating a long-tail royalty profile with small monthly checks extending decades. Direct buyers like Buckhead Energy purchase these interests remotely using discounted cash flow models incorporating 3-7% annual decline rates and 15-30+ year reserve lives.

## Key Takeaways

- **Loudon Field is a top-tier Illinois Basin asset** with over 400 million barrels of cumulative production, ranking among Illinois's largest oil fields
- **Primary producing zones are the deep Aux Vases Sandstone and McClosky Limestone**, both Mississippian-age reservoirs operated under continuous waterflood since the field's early development
- **Mineral interests are frequently multi-generational**, with many current owners inheriting royalty streams from leases signed in the early 1900s and distributed across heirs in multiple states
- **Valuation relies on discounted cash flow analysis** using 3-7% annual decline rates, 9-13% discount rates, and 15-30+ year remaining reserve life assumptions for stable waterflood operations
- **Indiana's 20-year Dormant Mineral Act creates urgency** for absentee owners on cross-border Illinois Basin fields, requiring periodic action to preserve mineral ownership
- **Remote sales are standard** — out-of-state owners can complete transactions entirely by mail with deed execution, county recording, and wire transfer handled by the buyer
- **CCS optionality exists** in select Illinois Basin acreage where Mt. Simon Sandstone beneath producing zones offers potential 45Q carbon sequestration value (e.g., Wabash Valley Resources hub area)
- **Multiple operators manage the field**, with long-tenured Illinois Basin private operators delivering predictable waterflood production and consistent royalty payments

## Page Highlights

**Loudon Field Overview**: The Loudon Field spans Fayette County in the Illinois Basin, operated by multiple long-tenured private companies running continuous waterflood operations in deep Aux Vases and McClosky reservoirs. The field has produced over 400 million barrels cumulatively, making it one of Illinois's most significant oil assets with a long-tail royalty profile delivering small monthly checks for decades.

**Producing Formations**: Primary production comes from Mississippian-age reservoirs including the deep Aux Vases Sandstone and McClosky Limestone. The page references additional Illinois Basin formations (Cypress Sandstone, Salem Limestone, Tar Springs Sandstone) with links to detailed formation pages.

**Mineral Interest Profile**: Common ownership structures include producing royalty interests (tract contributions to monthly revenue), non-producing mineral interests (fee mineral outside active zones), overriding royalty interests (carved from working interests), and non-participating royalty interests (royalty without leasing rights). Many interests were originally leased in the early 1900s and have passed through multiple generations of heirs now dispersed across states.

**Valuation Considerations**: Direct buyers apply discounted cash flow models using 3-7% annual decline rates typical of long-life Illinois Basin waterflood fields, 15-30+ year remaining reserve life, operator quality assessments, 9-13% discount rates for stable waterflood cash flows, and potential CCS/45Q optionality in acreage with Mt. Simon Sandstone sequestration potential beneath producing zones.

**Selling Process**: Buckhead Energy purchases Loudon Field mineral and royalty interests entirely remotely for out-of-state owners—offering free written valuations by email, arranging deed execution before notaries in the owner's state, handling Fayette County clerk recording, and wiring proceeds the day of recording.

**Other Top Illinois Basin Fields**: The page lists nine additional major Illinois Basin fields including Clay City Consolidated, Salem Consolidated, New Harmony Consolidated, Mt. Carmel, Lawrence (historical CO2 pilot), Main Consolidated (Marathon steam project), Bridgeport, Olney Consolidated, and Westfield.

## Related Topics

- [Illinois Basin — The Definitive 2026 Guide](https://www.buckheadenergy.com/illinois-basin)
- [How to Sell Mineral Rights](https://www.buckheadenergy.com/how-to-sell-mineral-rights)
- [What Are My Minerals Worth?](https://www.buckheadenergy.com/what-are-minerals-worth)
- [Should I Sell?](https://www.buckheadenergy.com/should-i-sell)
- [Beginner's Guide](https://www.buckheadenergy.com/beginners-guide)
- [Getting a Fair Price](https://www.buckheadenergy.com/getting-a-fair-price)
- Aux Vases Sandstone formation page (referenced but URL not provided)
- Cypress Sandstone formation page (referenced but URL not provided)

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**About Buckhead Energy**  
Buckhead Energy is a direct buyer of mineral rights and royalty interests with 18+ years of experience acquiring assets across major U.S. oil and gas basins. We provide free, no-obligation written offers and handle the entire transaction remotely for out-of-state owners.

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