My husband recently inherited Section 23 township 22 south 4ange 27 east. Today we got an offer letter saying this company wanted to open the well back up and check it out again. Apparently a while back they capped it because it wasnt producing much. They are wanting to offer us a bonus of 5k per net mineral acre for a 3 year lease. It also says upon receipt they will issue us a check of 58k. I have no knowledge on mineral rights nor does my husband. So we are looking for any info and help we can get. Thanks in advance…
Sounds fishy to me I would talk to Lawyer regarding this offer
Sounds like a good deal to me. Go for ¼ royalty and always have a landman/attorney review the lease. The company may want to drill deeper into the wolfcamp reservoir.
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25% royalty is pretty standard in a proven area. It’s hard to get 25% royalty the more “iffy” the area is. Just because the oil company can’t afford to give up too much of the revenue if, on a risked basis, the well may not have great returns. If you can get 25% great, but I’d be surprised without accepting a lower bonus amount.
For context, there was a lease filed in April 2019 in this section. To Panhandle Properties LLC. Royalty rate was 20%.
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