I recently received an offer from Dry Creek Energy to purchase my minerals in this section Section 35-1S-3W? for $14k per NMA. The Amsterdam is the only currently active well, and has apparently not produced since 9/24. With just under 3 NMA owned it’s a very tempting offer.
I see that Citation has several new horizontal wells pending nearby, but nothing much else going on specifically in Section 35 that I’ve seen. I don’t normally sell but this particular offer in a section with virtually no (apparent) activity seems very interesting, so any insight would be appreciated.
I would also appreciate any recommendations on finding legal help with reviewing offers like this, specific to Oklahoma.
I tend to think regionally instead of just in one section. Citation has MANY horizontals planned just to the west of you going diagonally SE NW. Continental has MANY horizontal wells just to the north of you also lined up in the same direction.
I suspect the Amsterdam was shut in for a bit while the wells to the west were being fracked. Unless there was a mechanical issue, that well has about 4.5 BCF left in recovery. That offer price indicates that someone is very interested in your acreage. The offers usually start out low ball, so if you want to sell, ask for more. They want the royalties from the current well and the future potential wells. But if you are willing to wait for what might be about to happen, then sit back and see what shakes out.
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I agree with Martha that it may be worth waiting to see what happens. Especially with significant development in the area. You never know if a mineral company has gotten a copy of a drill schedule and they know there’s a high likelihood of near term development in your section. I’m not saying that is what’s happening, but it’s a possibility.
However, if you need liquidity, then it may make sense for you to sell. If so, I’d recommend entertaining additional offers first.