I get an offer to buy my royalty

Oil and Gas Leasing Help
1

I have this ittie bittie royalty interest, but it has been good to me.

Currently, the checks have dropped to about $600 per month. There are two wells in this unit.

Last month, I received an offer to buy the royalty on a term basis for $36K. A bit out of bounds, so I checked the RRC for new permits. Nothing.

I let it sit on my desk and looked at it again today. Checked the RRC for filings and a new well was permitted in the unit last week.

What this clearly tells me is that the surveying company, the dirt company, the company landman, SOMEBODY told the royalty buying group inside information.

So, when you receive an offer that is too good to be true, well it is.

2

Dear Buddy,

Thanks for the heads up. This is the kind of thing inexperienced people like myself get in trouble with. Isn't inside info illegal, or simply unethical?

Wes

3

Buddy, I’ve worked for companies in the past that buy minerals/royalties and have bought some myself. I know that some of the outfits (mineral/royalty buyers) look for some type of surface permit filing. I’m not familiar with that, so I don’t know what it’s called, but that’s just what I’ve heard. Take it for what it’s worth.