Greetings! My parents have been thinking about what to do with their mineral interests in these two sections for awhile now. Anyone know if there is any new activity in these sections or what the market is if we decided to sell? Any information would be appreciated. Thanks!
Welcome to the forum.
Marathon is the operator for 20-19N-8W. There is one horizontal well there already which has a surface location in section 17. They have left room for several more wells in the future. Mississippian shale play. Section 5 has seven horizontal wells and section 6 has nine wells, so the potential for more is close by. Many companies drilled one well to hold their acreage and then come back and drill more. Depends upon their strategy.
Section 29 does not currently have a horizontal well, but is surrounded on almost all sides by horizontal wells.
The players in the township are Cimarex, Citizen, Continental Resources, Jones Energy, Marathon, NOsley Scoop, Roan (I think they just got bought by Citizen?), TPR Mid Continent.
If they sell, they may have to pay capital gains tax because their basis value was low. If they pass them on to the next generation, then the fair market value resets and the next generation and they may have less capital gains if they sell. Get advice from an accountant or estate planner familiar with oil and gas.