Continuing the discussion from What are you getting offered in Blaine: I was offered $4200 an acre for part of what I own in Section 22, 13N, 11W. There is a producing well there, drilled in 2009, no new activity since and revenues have declined. What does anyone think about the offer?
You need to put your royalty with that offer amount as the offer amounts are tied to the royalty.
Yes, of course, it is 1/8 royalty. Thanks, Hank
Never sell Royalty - You never know when one of the majors is going to come in and start a drilling program. If you need the money, then that is another matter, do research in the county where located (requires you going to your local library for help) to determine if any royalties have been bought or sold recently in that county, or close to your property) Also, important to inquire from the working interest operating company if they are going to drill more wells. And inquire if they would like to make a bid for your royalty. This gives you a benchmark. It does not matter whether you are going to sell or not, this just gives your insight for the future. JMB (a royalty owner in Winkler County for 75 years) I am a professional Royalty owner - We NEVER sell royalty.
Thanks, I really appreciate your advice. Hank
Personally, I would probably not sell if I were in that section, township and range. Quite a bit of horizontal activity all around you. Increased density was filed in 2, 8, 11 in 2018 and 2018. Can’t guarantee anything in the future, but if you do not need to sell, consider hanging on for the future. Most offers I have had in that area have been low to what data would indicate they should be.