Thought I'd ask here as someone asked me but I didn't know as that's a different side of the business than I'm in...
Someone approached my buddy about some of the prospects that his old man (independent geologist but now gone) had put together years ago - he still has all the maps, logs, 3D seismic (and model) and the proposed exploration targets (deeper prospects of an existing field). Current operator is just stripping the existing reservoirs.) What sort of ORRI should he be asking for? I've Googled and seen the 1.5-3% range but I've has someone else say 5-7%...
I figured someone here might know what he might expect/request when meeting with the potential investors...
Plan was to just hand over all the info to the investors - with their own G&G team to review/revise existing prospects - for ORRI and some sort of "transfer" fee or signing bonus. (And maybe the possibility buying in WI in the future if the first few wells are successful...) I didn't know what to tell him a "reasonable" request for % or $ was these days before he walks into the discussions... Anyone?