Good morning everyone,
We recently found out that my spouse's family owns land in section 5, lot 7 in Reeves County. After years of dormancy, we started to get offers to lease our land. Apparently, it's been producing. The family hired a lawyer, and negotiated a lease for a bit over $15,000/acre plus 25% royalties. Apparently, there is also royalty money from the past 5 months in escrow. We should know within the next few weeks, upon signing the paperwork, how much money we have coming to us in royalties.
My questions are:
1. Does anyone know how active this land is? I'm not sure if we're talking a few barrels/day or if this is a major operation.
2. Does anyone in a similar situation know how much we could be looking to receiving per acre in royalties? (Each family member owns about one acre.) I have no idea if we should be expecting a few dollars per month or something more substantial. I'm assuming since they paid such a high price to lease the land, it must have some value in terms of production.
Thank you in advance for any help/information. We're both teachers and have very little knowledge of the industry, something we hope to change!