Hi,
New here. I inherited mineral rights in Spring 2024. I’ve been in the Royalty Owner process with Chevron for some time, haven’t received a payment at this point. I’ve been receiving various (I think impressive) offers to purchase on 20 acres of the 640 total. Property description on Quit Claim is T9N R58W SEC 13, well name Castor Fed LD 13-78HN Ni. On the offers to purchase they reference the same information except they note Section 24 not 13. I am out of state, should I be contacting a local professional for advice/help? And who? Or just wait and see what happens? Thanks,
The original Castor Federal LD 13-78HN NI was drilled in 2013 and listed last production was in 2022. Section 13 has quite a few more horizontal wells by Bison . They are fairly young so worth a good bit, so you want your royalties from them before considering any offers. Quite a few permits have been filed to drill additional infill horizontal wells into the nearby sections including 24. Bison may be planning to drill more wells on your acreage. If you have no need to sell, then just sit back and see what happens. Most offers to buy are for a certain amount of payoff within 2-5 years. They plan to make a profit off of the remaining years of production!
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Thank you, appreciate it. I didn’t know anything about Bison. I will try to reach out to them.
Welcome to the forum! Section 13 looks to be fully developed. The initial well that you mention, the Castor is indeed operated by Chevron and drilled in 2013. The other 8 horizontal wells that were drilled through that section in 2022 are operated by Bison Operating and they are called the Tatanka Federal wells. I would be trying to contact Bison to get into pay status on those other 8 wells also. I suspect that who ever is trying to buy your minerals has reason to believe you may own in section 24 as well. That section has some producing wells, as well as new wells in progress that should be producing I would guess early next year. Here is a map image of your section outlined in Red, with the Castor well highlighted in yellow. You can see the additional wells I am referring to on the map as well. As far as who to reach out to, there is a directory of mineral service providers on this forum, so you could reach out to a Mineral Manager on there. Or also look up the NARO Rocky Mountain chapter and email them and they can help guide you as well with whatever information you may need. As far as selling, I would definitely talk with a professional before deciding to sign the dotted line. Hope this helps!
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This forum has been so wonderful to me, thank you so much. Can I ask why they would think I own in section 24 as well, even if speculative?
Ask the agent that is contacting you about how many net acres they have for you in 24. . Sometimes folks are not aware of everything that they inherited and sometimes, the agents can be in a hurry and send the wrong letter to the wrong person. Or the operator may be planning to drill additional longer wells into a different zone that would include both 13 and 24.
Next time they call I will certainly ask. I’ve been contacted by two different companies both after the same thing. One of which has sent me probably 15 offers. Really appreciate the information and guidance.
The more offers you get, the more “somebody knows something”. Ask them directly why they want to buy and what wells are about to be drilled. See what they say, but take it with a grain of salt. The more offers we get, the less likely we are to sell.
In the meantime, contact Bison and get your royalties from them into your hands.
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