A friend has received an offer to purchase her net mineral acres in Sec 33 -4N-4W. However, the offer letter states the purchase of the interest will be back dated to May 1, 2022. What reason would they back date a purchase effective date?
For that particular set of acres, Casillas was just approved for quite few new wells. If your friend sells with that back date, he/she loses out on all the new wells and their royalties.
With dialog straight from Field of Dreams, “don’t sell Ray, don’t sell”. Four new wells were spud in June and became active in the OK gross production tax database in September. I have never heard of the back dating but it may mean the payment would be calculated as the NMA x offered rate less payments already made to your friend for production back to May. Anyway this is easy. Your friend should receive a very substantial check in the spring of 2023 for six months of production for these four new wells and then monthly from then on for all 5 wells. As a bonus additional wells have been approved but not permitted.
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