Is something happening in Section 5 or that region? We leased our rights a few years ago. Now there are folks sniffing around offering to buy. Is something happening there?
How far back did you lease? You are likely getting offers from mineral companies looking to buy your royalties.
There are 11 producing horizontal wells on the section. No new wells coming that the public can see. Hope this helps!
Have you been receiving royalties on the existing horizontal wells? If so, then any offer should realistically be based on future cash flow as the section is heavily developed already and there’s minimal upside for future wells in the short term. However, if you haven’t received any royalties on those wells, then you may have funds in “suspense” that are owed to you. The offers may be trying to steal your suspense account money assuming you don’t know about it.
Yes, we have been receiving royalties on one or more horizontal wells for about 5 years and we got the suspended royalties for the time period while they hunted down heirs. Maybe those looking to buy our royalties don’t realize we already have them.
Most likely the mineral buyers are wanting the more steady CF of older wells. Could be a good time to get a couple of valuations from folks. Sell 1/4 or 1/2 now and still have some upside if they sneak in a well or two down the line.
Multiple pipelines are being constructed in the Permian Basin. The current shortage of pipelines had created a bottleneck for oil & gas coming from the Permian Basin. Expect production to double once these pipelines are complete.