Can you tell me news of the referenced Section 8 above. I’m thinking of selling my mineral interest and have an offer of $6,000 / NMA. Is this a good offer for the area? My knowledge of the oil industry is minimal.TIA
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Any time I get an offer to buy my minerals, I ask “now why would they want those minerals?” Usually a good reason-they want my royalties. So I try to find out what they know that I do not know.
Continental Resources drilled the Gallaway 1-8-7XH back in 2016. They are now drilling the Gallaway 2R-8-7-6XHM. The buyer hopes that you do not know about that well and can close the sale before the well comes online. It was spud 8/31/21. They want the continuing royalties from Gallaway 1 and Gallaway 2 and any potential royalties from other wells (if any) in the future.
You should have gotten all the paperwork on the new well. If not, then you need to contact Continental and give them your address. If you have not gotten any royalties from the first well, then get that straightened out quickly. They may be holding funds in suspense for you.
The amount offered is based upon your royalty. I cannot comment on “good offer” as that is unique to each mineral owner’s needs. In my experience, most offers I have received have been low compared to the royalties that I have actually received by hanging onto the acres. (Totally dependent on price of product and reservoir capability.) Gallaway 1 has a long life left to it unless there are mechanical problems. Gallaway 2 looks promising as well. Never any guarantees…
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Interesting! Thank you for the quick response and for sharing all this information. I need to let it absorb in. I will contact Continental and inquire about the new well. See where that leads me. Thanks again!
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