Somebody wants to buy my royalty

Many of the offers to buy come before the next round of drilling. In general, the buyers offer a certain number of months of royalties at a discounted rate for the time value of money. What they may not tell you is that there is another round of drilling coming. That is how they plan to make their money. That is why I would regret selling.

Not knowing exactly where you are located, I can just comment that many of my offers in West Texas have been for 60-80 months of production.

If you are content to just let things play out, then you benefit from the royalties you have now and maybe you will have more in the future. No guarantees, but if there wasn’t something there, then why would they make an offer. And first offers may tend to be low just to see if someone will bite.

Do you have a royalty interest in just the one well or do you have mineral rights?

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