I got a letter today from the landman who leased my 5.9259 mineral acres in Richland co Mt my well witch is the Arrowhead Federal had its first production in Jan 2012 of 2,243.00 barrels of oil my royalty share based on 18 percent on a 640 total space unit is basically 299.06 approx monthly the landman offered to cash me out or basically buy my minerals for a grand total of 3,000 starting effecive in Feb of 2012 even if he would have offered me more i will not sell my question is does this sound like a normal amount wiht the small amount i own in mineral acres not the price he offered to buy but the amount monthly for the amount of barrels or oil their pulling out and what about the gas? thank you everyone for your responses Theresa Hennen
Ms. Hennen, the gas may be being flared [ burned off ] and a waste to all concerned for lack of a pipeline or a reasonable market to sell it to. If January was the first month of production there may be no telling how many days production that is. February might be tripple that amount or half, just have to wait and see. The offer you received sounded much like offers I hear about all the time, a last ditch effort to buy what you have before you know what it's worth. I think you made a wise decision to hold onto it. If it really is a dud and you need the money it will probably be about the same offer in 6 months and you could sell your royalty stream from this one well and retain your rights in all wells drilled after. Please let us know what the next check looks like.
Theresa:
I agree with rw in that your decision to keep your mineral interests was a wise move. You have no idea what this operator has planned as they most likely have accessed the seismic data and could have one or more wells planned for this acreage. You have to remember that these companies have this type of inside info and by purchasing your minerals, they could profit big time in the long haul. My advice is just keep what you got and watch the show. Good luck.
I thank each of you for answering my questions i did not realize that another well could eventually be placed on this area with out your input i would have been in the dark but i still would not have sold thank you all best to you on your mineral rights