A friend has received an offer to purchase her net mineral acres in Section 33, Township 4 North, Range 4 West. However, the offer letter states the purchase of the interest will be backdated to May 1, 2022. What reason would they backdate 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 Oklahoma gross production tax database in September. I have never heard of the backdating but it may mean the payment would be calculated as the NMA times 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 five wells. As a bonus, additional wells have been approved but not permitted.
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