I own a percentage in a well at one location. I have mineral rights at a different location that a company has expressed interest in buying. They have asked for copies of my royalty statements to give me an offer on the location they want to buy. Why are they asking for this and should i send it???
Welcome to the forum.
If you are not interested in selling, then do not send them the statements. They are trying to verify your decimal interest in order to send you a more specific offer. The more important question is what do they know that you do not know. Are there royalties in suspense (they want them), are there pending wells that are about to be drilled (they know and they want them but they are probably not going to pay you for them), they want your current royalties and they intend to make a profit off of them. If you post the state, county, section, township, range or abstract in the proper state and county on the forum, then folks in that area may be able to give you insight into the activity.
More than likely, the reason they are asking for your royalty statement is to see the owner decimal interest number. This allows them to calculate how many net royalty acres you own within that unit if they don’t have title for it.
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If you send your royalty statement, I suggest blacking out your owner identification # as a precaution to keep anyone from contacting the company about your account.
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The royalty statements they are asking for are a different well. Not even what they are asking me to sell to them. In a different city.
That might be a red flag to not send any statements…
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