My family has interest in 60 acres in Lea County and have been bombarded with offers from Landmen claiming to represent the driller to buy our mineral royalties. We already have it leased to another company with one year left on it. Apparently oil and gas have been found. To say the least, this is very confusing and we don’t own enough to justify hiring an attorney. My questions are: Would it be wise to sell or just take a monthly royalty check? What happens to our lease if we were to sell the net mineral acre? And how does one determine which landman is legitimate? Any suggestions and/or help will be greatly appreciated.
Matador has permitted several wells, and there are many around Section 23 as it is a good area. Unless you need the cash you should just hold off and wait for the royalty. Nothing happens to the lease if you sell, it stays valid. The landmen are probably all legitimate as they are probably with big mineral buyers that send out mailers daily. If you want to sell them see who will give the top dollar, but you may want to wait to see what type off wells/income starts coming in.
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Chris13,
Thank you so very much for the information it’s very helpful!
donna
Idonnarhea,
Take the royalty checks. They are only the income from one formation. There are potentially several other formations that could be exploited later. Do you have any information about what formation they plan to exploit and, if possible, the depth of this formation! There are possibly other formations that will be exploited in the future. Find a legal, informed company that could possibly help you to get more from other formations than the one that is probably going to be produced by the lease you are in now! Multiple formations are often available from leases! Get Legal Help Now!!Very Good Advice Chris13!!
Thank you Stephen for the valuable information.
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