Got a call today of a landman offering to buy my (elderly) dad's interest in some producing gas wells in East Texas. I have no idea how this process should generally work, not to mention no idea how to value his royalty interest.

Would be greatly appreciative of any tips or points of contact from fellow Ags.

You need to look at the monthly statements. Don't know if your father's memory is good/bad. Don't know if this is something he never knew anything about or was in the oil business, etc.

Monthly statements will show your father's percent of working interest. Also show how much the well is making each year. Call up the operator and ask for JOA.

When landman calls out of the blue, it's typically because they want to drill another well in the area.


Figure out some basics, then worry about the negotiations.

Dad's memory is good, but this is all inherited, so he has no idea about any of it other than a check shows up in the mailbox. Your reply is very helpful. I will look into it

I just read your response. Which caused me to reread the original post. The way your wrote it made me think your father had working interest.

Now, I think he just has a royalty interest in a well.

Basically, the same answer though. Read the last few monthly statements. Figure out what well or wells he's getting paid on. Odds are, there is a new plan planned for the area.

Yes, I looked at one of his stubs some years ago and it's definitely just a royalty interest.

Are they wanting just the interest in these producing wells or are they wanting to buy the entire tranche of minerals?

My dad is a landman and can help! Will send you a PM.