Math Does Not Work


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.



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



That helps explain the offers - Thank You.