Township 23 south range 34 east

[Gibby]

I have no idea what I have here . It was left to me and I received an offer to purchase from me federal lease # nmnm 0587 . Can anyone help me understand what I have and what they are offering

Township 23 south range 34 east section 5 lots 1 and 2 s/2ne/4 Section 6 lots 1 2 6 and 7 s/2ne /4 , e/2sw/4

[maxroyalty]

Hello @Gibby. Welcome to the forum! You probably own an overriding royalty interest in the federal lease you mentioned. It is a very old lease committed to a very old federal unit and is in the core area. Essentially, that means that it is an interest that will terminate when the federal lease expires, but it is not likely that the operators will allow that lease to expire anytime soon.

Kaiser Francis is the main operator. They completed a great well (Bell Lake Unit North #230H) crossing your Section 6 lands in 2018. Are you receiving royalties from that well?
They have proposed a number of new wells to be drilled on the Section 5 lands as well.

The best advice you receive on here is to not sell to the first bidder. Even in today’s market, there are a number of mineral buyers who will be interested in these lands. If you do decide to sell, take your time and do your homework or work with a mineral broker. You can also ask the offeror how many net acres they think you own and what price per net acre they are offering. That will help give you a better idea what they are offering.