We have interests in 5-4N-6W. After receiving a copy of Gulfport Midcon’s increased well density request, we are suddenly getting some pretty amazing offers. Can someone explain in simple terms why this is so? I assume this is positive news. Thanks
Gulfport has just started royalty payments on 2 new good wells in SECTION 9, T4N, R6W. I think the area has a long history of good gas production so hold out for a good 1/4 royalty, be patient and enjoy the future. My site is the location of the dumbest decision I ever made – Back in the pre-horizontal days I actually accepted a 5K offer in 1980 to exchange my (at the time) 3/16 lease for a 1/8 lease. I spent the money fast and have many years of regrets!
The wells along this trend have been excellent. It is very common to get offers when this many wells are about to be drilled. In my experience, the offers have been lower than what the wells have actually paid out. But I take a multigenerational view. Most offers are based upon a shorter time frame.
Thanks for your reply, very helpful!
If you are getting lease offers, then get a good oil and gas attorney to review any draft lease as it will not be in your favor and needs significant edits. If you are getting buy offers, then each owner needs to make their own financial decision. I hold onto my minerals.