Math Does Not Work

#1

Regularly receive offers to buy our minerals in 26-4-5 Grady County. There are a couple of vertical wells that produce very little and two horizontals that were drilled a couple of years ago. If I take the offer and divide it by the royalties I receive, the investment would not pay out for over 10 years. I would believe that it would be a much longer payout if you consider decline in production of the horizontal wells. Is this normal, or is this an indication of future activity in this section.

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#2

Those offers are taking into account that the section immediately to the west of you has at least ten wells. Now do the math.

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#3

That helps explain the offers - Thank You.

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