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 1000bbls , and 3mcf , water was at 1200 bbls, every 24 hours and the price of oil was 120 west test crude !
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