I hold net 8.8 acres ( total is 72 acres split with my 2 siblings) in Weld County, Co 4N64W section 22 that i recently inherited. The rights have been held on the maternal side of the family for more than 70 years and to my knowledge they have never been looked to be leased or drilled on. I know that OXY and Chevron are drilling on contiguous acreage and have reached out to see whether this acreage might be on the target list but no response. Meanwhile daily calls reegarding the purchasing of the mineral interests are happening. In order to not open my hand I am reluctant to reveal these investors names but they are legitimate in terms that their businesses do purchase mineral rights and they have sent me written offers that are being reviewed by an O/G attorney the offers are between $10-15K per net acre which when added up is significant money for mineral interests that have been held for 70 years with no activity. What is the best way to independently evaluate this situation–I am 60 years old and in my thinking 150K ( if i were to sell and get top dollar of the offers) is worth more today than a potential revenue stream in 3-5 years perhaps? Any guidance toward the analysis would be appreciated ! Thanks
Don’t sell unless necessary!
You are in a good position. You might make some money if I play it right. Remember they they can drill without your approval
PROP ( Prairie Operating Co) recently has been approved for drilling in this area plans for multiple wells Suggest you contact them about leasing your minerals
Please slow down-DO NOT sell until you understand what you have. Tell your siblings to slow down as well! If you just inherited, then you need to do a lot more research. 22-4N-64W has quite a few horizontal wells. I count at least 16! You need to contact Chevron and tell them that you just inherited from XX and what do you need to do to get into pay status. This area is part of the Wattenberg Field.
This map shows many of the old vertical wells, but there are quite a few new horizontal wells. Some were just drilled and about to come online. That is why you are getting offers. You may have royalties in suspense that the buyers are not telling you about. You may have royalties about to come online that the buyers are not telling you about. Getting multiple offers is always a clue that “somebody knows something and they plan to make a profit off of you!”
If your attorney is looking at the offers, then he/she should get a landman or someone who can navigate the CO website and get a list of all of those wells. In my opinion, you may have gotten lower offers than the value of the wells. You may want a professional engineer to evaluate their prospective value.
Thank you very much the thorough response and guidance and that really at this point is what we are collecting and have professionals involved as well. Just with these types of efforts it seems advantageous to reach out to others for their thoughts on like situations so in agreement and appreciative of the suggested actions.
I was drilling in weld county in 1993 there was 46 rigs running in weld county. Tight gas. There are more scams out there than u could imagine.
Watch out about taxes you could end
up owing have fun
We have some producing net acres in Weld County and receive unsolicited offers regularly. The wells are now 12 years old and not producing like they used to (duh!). A friend who was a landman in Colorado until his retirement has ALWAYS offered this advice: unless the wolf is at your door and you have to have the money to satisfy your debts right now, NEVER sell mineral rights.
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