Dear Miss Martha,
The company-to-company transactions usually involve leased acreage including current production as noted by Mr Goodwin. Also, a substantial part of the value comes from not having to spend months or even years of labor-intensive effort with all of the man-hours worked by the land department to assemble acreage blocks.
Echo is having success with both minerals and leases in this area.
Buying an 80% working interest is a far cry from buying a 20% royalty interest.
Well I just got an this e-mail today if it's of any help. I'd appreciate everyone's input about it also.
It's Newfield's 2nd quarter report.
http://files.ctctcdn.com/c15c174c401/abc697eb-7f5d-43b4-b5d5-ce788d9c23f1.pdf
Mr. Ladd,
Out of curiosity, did you end up taking Echo's offer on your acreage or did you decide not to sell?
Best of Luck,
Cameron
Echo ,bcf , sooner trends still biding on them but m Barnes makes a lot of good points and thankful for that
Larry-
If you are not needing all the money but could use some money, I would tell all the companies that you are not selling your mineral rights but you are willing to sell 100% of the ROYALTIES in the Ladd 1-8-5xh WELLBORE ONLY. Operators tend to get better and better at maximizing well performance over the years. Once they do, they could come back to your section and drill 7 wells during the same year...and that is when you want to own your stuff. However, if the well is disappointing, that well will hold the acreage and it may be 3, 5, or even 20 years before they drill another infill well. All that being said, I would never tell anyone not to accept $13,500/acre... you could possibly be missing out on a ton of money/or possibly making a ton of money with any decision you make.
Thanks for the information I think I’m going to Gamble on the bet of more Wells
Larry, CLR has a increase density application, underway 9 new wells for you.
DR
Thank you for the info I have been looking but don’t know where to look
Mailing should show up this week.
CD201602668