I have royalties in Scurry County & the producer is Kinder Morgan and recently I have been receiving a number of pretty good offers to buy my interest. While at this point I am not interested in selling I am curious if there is something in the wind to make these offers to be made. Living in Northern California and even though I daily read the Snyder newspaper I have seen nothing to motivate these offers. So if anybody has any information to share I would appreciate it jimjoh
Jim, I've been receiving offers on a SACROC interest for decades. There has been ten to twenty different companies or entities (LLC, Joe Blow, etc) making the offers. Like you I just received another. This one has a pretty good multiple on it.
I'm unaware of anything new in the wind. Several years back Kinder did try a new variation in the recovery method. As far as I know that effort failed to boost production in any meaningful way. My observation is the amount offered varies depending on the company making the offer (some always looking for a steal and others with more reasonable numbers). However as much as anything I believe the latest offer reflects $90 WTI and an expectation that oil prices will only increase.
Interest in the Wolfcamp shale formation seems to really be heating up. I would not advise the sale of rights. Leasing...yes.
Mr. Davis, I'm not doubting what you've posted, and I fully agree with your advice. However, I thought these potential new shale plays were all far to the south and west of Scurry County. Have you seen something to suggest they might extend up as far as Scurry County?
It shows some on Scurry & Borden counties. I hope it is correct Jim Johnston