We just inherited royalties in Midland County. They have been in the family for about 20 years and yield $3000 to $5000 per year. We are getting multiple offers to buy for over $200,000. We thought royalty values would be maybe 3 times annual. What is going on? Can’t find any info on new formation plays in the area.
SW/4 of Sec 3 blk 38, T2S Brooks “B”. NRA 4.17 ac SE/4 of Sec 3 blk 38, T2S Brooks “D”. NRA 3.61 ac
Real simple… the letter carpet bombers know that drilling and more money are highly likely coming your way (and/or drilling operations already underway). Stand still and do nothing, or proceed vvvverrrrryyyy slowly and cautiously. As a general rule, doing nothing is very often the best course.
I worked in that area and one well that was drilled was making a 1 million a day with new drilling tools! I would not sell anything! That’s just me, usually the oil company starts buying mineral interests when there’s a new discovery and fixing to pool everyone! Good luck and pray on it!
Jimmy, I believe your calculations are wrong.
Maybe so. I well was making over 1000 bbls, and 3 mcf, water was at 1200 bbls, every 24 hours and the price of oil was 120 West Test crude!
This topic was automatically closed after 90 days. New replies are no longer allowed.
