My Mother received two offers from San Saba, one for each of two wells in which she has an interest. The irony is that the higher offer came from the well with the lowest production, even to the extent that sometimes the amount does not break the $100.00 amount for a monthly royalty check. The offer was totall out of sight approaching 10 years of average current royalties on a 30 year old well. As our in house attorney came from oil and gas, I showed the draft and contract to him.
He was aware of this type of trolling and thought the offer is legitimate, he confirmed the gotchas' that I had noticed.
First, the sale is binding. Sign that paper and they own your royalty. Second, the amount will definitely go down because it states that the offer is subject solely to their approval or title and verification of interest income. Third, they ask for the last royalty stub. If this were a legitimate offer (in the sense of being reasonable from a business perspective), they would know the production as this information is available from the Railroad Commission.
Legitimate in the sense that it is legal, yes. Legitimate in the sense that you will not realize the amount shown and there are reasonable in the business sense and not ethical, no.
The other possibility is that the gas field known as Cotton Patch is in East Texas and these folks know something that you do not, such as more drilling, new geological finds, etc.
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