I have royalty in 11-9-9 Caddo and Hazelwood has a vertical well. I might get a check once a year if lucky. If they want to drill horizontally. Will we get to release? It is the Hollis well and the Hollis #2 was abandoned but Hollis must just be dripping.
The strategy that I have seen on my minerals is that they limp along those questionably economic wells as long as they can and then drill horizontals in a different zone. I am held by some old 1/8th leases. Sometimes, that is not bad if the leases are gross proceeds leases versus a new lease where they try to take out all sorts of deductions (which I fight tool and nail). Wish that I could get a new 1/5th or 1/4 gross proceeds lease. Sometimes, mineral buyers grab up the minerals and then go to court to get the old wells declared uneconomic and release the lease. The seller is out of luck at that point since they don’t know about it. Just depends upon who the players are and what their strategy is.
Thank you M. Barnes for the information.