Location is T146N R99W Sec30. Diamond Resources offered $400/acre +3/16 royalties.
Is this a fair rate? Is this a good company or not? We own only 20 acres out of the 240 acres. Will this reduce our negotiating power? Thanks
Bernie Feel free to contact me if you would like to discuss any questions or concerns you may have.
It looks like there is already a producing well in the SE part of that section. I would think you can get higher bonus and royalties, 20% seems to be the going rate these days. Of course the more acres you have, the more negotiating power you have, but 20 acres should still get you a good deal. Smaller acreages can often get the best royalties since it is a drop in the bucket. We have had good experiences with Diamond Resources in the past although someone else on the forum felt they were not dealt with fairly. You need to keep in mind that their job is to get the best deal for the oil companies, not for the mineral owner. Diamond Resources does not do any drilling, their role is to procure the leases and assign them to the oil company so you will want to find out who they are leasing for.
There is a producing well in that section but it is an offsite location, and is drilling in section 31. Thus your minerals are available. If you have any other questions let me know.
I wouldn’t trust Diamond Resources, but then I know them. Make sure your minerals are recorded in your own name in the county in which they lay. RWK