Does anyone no what's going on, I've had three offers in the last 2 months. I have never sold in of my interest, but the offers a very high.
Others are more knowledgeable, but I believe it’s generally due to the potential or plan for drilling a horizontal well. Perhaps buying up mineral rights to resell to a big operator.
By the way, once I started to get significant offers in the mail, and started to look into things, I was able to get offers 3 x higher than those offers, with 1 offer 6 x higher (but not as solid). So just be aware that even if those unsolicited offers seem quite high, they are probably much lower than you could actually get.
My philosophy is to never sell minerals or royalty interests. I have never regretted declining offers to sell my mineral interest. I understand that some interests, as they are divided down through generations, become to small to make a meaningful difference. Otherwise, unless you need to put bread on the table, I suggest not selling. Beware if you own other mineral interests in Howard County. There are disreputable mineral interest buyers who will say they only want to buy a specific interest but will include a clause in the deed that you are selling everything you own in the county.
My philosophy has been the same. However, over the past 12 years, on at least two occasions I've had substantial offers on wells that were being drilled, & I refused. These wells were not completed. I would have been wealthier if had taken their offer. Therefore, when someone offers serious money, it has caused me to rethink my position. Part of my problem is that I'm not sure what I own, the language in the NPRI conveyance is unclear. The company that's interested says I own 10.752 royalty acres in the S2 Sec 13 Blk 32 T2N. There offer is in the many thousands of dollars per royalty acre. I do believe Sm-Energy has permitted and/or is drilling 3 wells from a pad that is 300 feet from the south property line, going south. Additionally, Sabalo has drilled a well about 300 feet going north along the west border. What to do? The SM-Energy Unit runs the entire length, east to west, of the southern border of A-269, and Sabalo's unit runs the length of the western border. Most of the offers we get are destined for file 13, but these people are serious. Any assistance would be appreciated.
Thanks
If you only own 10 net royalty acres, then I can understand your thinking about selling. Is this all you own in Howard County? Anyone selling minerals or royalty interests needs to read the deed from the buyer. Unscrupulous buyers will add a clause that in addition to the specific interest on which they offered, they will have a clause stating you are selling everything you own in the county. Better yet, get your attorney to draft the deed.