Could anyone tell me how close the Comstock drilling is to my mineral interest located in A-485 and A-590 in Leon County? Is this reasonably in the area of interest, as I am receiving numerous offers to buy my mineral and royalty interest. Some are very lucrative comparison to others which are obviously low ball offers. Thanks for any insight you may be able to offer. So many unknowns.
jburt1204 I am guessing from looking at the map that your minerals are located between 5 and 7 miles Southwest of two of the Comstock wells. Circled in red shows location of your A-485 & A-590. Circled in blue are two of the Comstock wells(Dinkins 1H/API-289-32180) & Lanier 1H(API 289-32181)
CLICK ON MAP TO ENLARGE
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485 and 590 are definitely in the primary area of interest. Surprise Valley, the main leasing agent for Comstock, has leased a 400-acre tract in those two surveys.
Thanks Alan. I own 20 NMA. in these tracts. I have been offered to sell my interest anywhere from $4,000 to $6,000 + from various sources I am thinking this is a little low based on being the first offer and due to the amount of interest. These offers are in writing and subject to signing a Purchase and Sale Agreement and their due diligence in a title search. Not sure if this is normal practice to be paid 10-30 days after signing a PSA. and/or Conveyance? Perhaps I need to consult an oil and gas attorney. Thanks again for the insight.
Here’s an example of what the royalty value might be for your 20 NMA:
Comstock’s first Lower Bossier well, the Circle M Allocation 1H, has produced about 8,000,000 MCF in its first 11 months. Assuming gas is worth $2.00/MCF, total revenue for the 11 months equals $16,000,000. Assuming a 20% royalty percentage, total royalties equal $3,200,000.
Assuming a 1,200 acre unit, your share of the royalties would be $3,200,000 x20/1200, which equals $53,333. Not bad for 11 months of production!
Of course this doesn’t mean that you are guaranteed this level of royalty, but it is certainly possible if your NMA gets included in a unit.
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