Got offer to buy rights in 160,161 north 101,102,103 west for $600/acre . be aware there are two new wells in the area, that are very productive. The ones at 160n 102w sec 20 seem better than usual. well 36500 mar 15783 apr 11108, may 5094 well 36501 mar 13000 apr 8896 may 5028 Also looks like the fast taper that wells in this area show. But this does show why there is some interest all of a sudden.
The simple answer is yes. You also noted the production declines. There are two factors with one being the current prices and as a result the companies taper the production. Secondly, if these are horizontals there is usually a sharp production decline the first 18 to 36 months depending upon area location and formation produced. In that first group on months upwards to 50% of the lifetime production may have been generated followed by a more normal or flatter decline curve.
You need more information prior to responding. The same companies may have more un-developed drilling permits and when oil hits $50 drilling will start to come back to life. Secondly you should obtain a ND engineers valuation opinion prior to moving forward.
We have no intention of selling at this time. I just thought people might wonder why someone wanted the area. We leased some about 18 months ago and I wondered why the sudden interest? After seeing the two wells to the east I realized that may they did have something to go after.
Good decision. Whenever someone approached asking if they should sell my first question was are you in a cash crunch?
A few years ago a trust was terminating with all proceeds due a charity. The charity asked us to cash out of the Williams County 50% producing mineral interest. We obtained a current market appraisal of $1.1 million and shot gunned the sales proposal about 50 directions. A dozen responses were received ranging from $125,000 to just under a million. This is one of the reasons I caution everyone to move slowly on every unsolicited offering.