Continental drilled numerous horizontal wells on S33, 6N, 5W in Grady Co. a few years ago. Initially the royalties were impressive, but not anymore. They have diminished to the point it might make sense to sell. Can anyone confirm what is happening in that area and if the two thirds reduction in royalties is consistent for a well starting production in 2020.
The volume decline for these wells is very normal for horizontal wells. Take into account the drastic change in oil and gas prices over the last few years. The royalties reflect that variety. Can go up, can go down.
These wells have about two thirds of their volumes left. Probably take decades to recover. Most offers to buy are for a discounted cash flow over a 3-5 years depending upon the buyer. Up to you to decide whether you want long term royalty income that you can invest in other income producing instruments or if you want to cash out now. Consult your CPA for tax implications of long term capital gains of selling.
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Has anyone offered to buy your minerals in the last 6 months?