I have received and offer to purchase my minerals in the above location. Dry Creek Energy made the offer. I have not seen any activity in this area, although application is being considered for a horizontal well at this time. Offer was for $6000/net mineral acre. Is this even in the ballpark?
Thanks for any and all responses.
You are getting an offer because Camino is planning on drilling a horizontal well in that section. The pooling hearing was supposed to have been on June 1, but I have not checked the docket to see if it actually occurred. Offer amounts are based somewhat on your royalty rate, so if you are already leased and have a 1/8th royalty, you will get a lower offer than a royalty at 1/4th. The question is whether you would make more than $6000/ac over the life of well with some discount factor for the time value of money. And might there be more than one well…Most offers I have received have been lower than both of those options. “If” the well is productive and economic…
Thank you for your response. My minerals are hbp for generations, and the royalty is .1875. I only have 1,44 net acres, so the possibility of multiple wells is a bit slim. I understand all of your post, and my guess is as good as yours. I will counter the offer, but I am leaning to accepting it.
Thanks again
Your 1.44 acres will be a part of the larger 640 acres that will be the spacing for the first horizontal well. It would also be a part of the same 640 acres if they drilled more than one well in the future.
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