Hi, My sister and I are inheriting mineral rights in Alfalfa County that have been passed down from my Great Grandfather. We are complete novices and don’t know how to determine the the value of this asset so that the estate can be closed. What I know is this: there is an interest of .00131835 in four wells in Alfalfa County-- Section 10-26N-11W. It was recently producing but am not sure if there is a lease on it at this time. SandRidge apparently didn’t give guidance in determining value. Anybody?!
I'm not sure about the value, you may end up having to speak with an appraiser. You can go on the Oklahoma Corporation Commission website to find information if there are any active leases on the site. You will probably need to narrow it down to quarter sections in the description. Sandridge appears to have some wells in the area, but just a quick look and I couldn't tell about the production. There is a lot of information there in the oil and gas database. Also, you can check the OK tax commission site to see if sales are being posted there. Good luck. Hopefully, someone will tell you about the appraisal process.
THANK YOU! Not sure what that means about quarter sections as I really have no idea how any of this works, but I appreciate this information and will look into this. Unfortunately, my Dad's estate has been a nightmare and in order for me to get his estate closed and this nightmare behind me, there needs to be a value put on these rights, per the attorney handling the estate. Sounds like this value will impact both the amount the executor receives and also what would happen if we were to sell the rights in the future. Do you know when it is valued at 3x earnings if that means what has been earned in the past year? Again, thank you so much for the response to my question.
If you go to the corporation website, you can see the wells on this section.
http://occpermit.com/WellBrowse/Home.aspx
Put in Alfalfa County with the section number. The quater does not matter. It looked like you have five wells that were drilled. I know at the early period of the boom, one well had poison gas and had to shut it down. But most produced pretty good. Minerals are going now for around $750 and on up an acre since its slowed down, but a local lease company could give you a better price of what the minerals are worth. Hope this helps.
Yep, those are the wells according to the information I have. (Brower 2611 1-10H, 2-10H, 3-10H, and 4-10H). God, I feel stupid, but looking at the link, how did you figure out these wells were drilled? I haven't been told how many acres (mineral rights only) we own, only "an interest of .00131835 in four wells". Thanks for the response and link, Tim.
Anne,
If you go to each well, it will have a completion report that you can look at. One of the pages will tell you how much the well produced initially. It drops off considerably as time goes on.
When you pull up the wells, pick one and then hit the magnifying glass on the left, and it will pull up all the paper work for that well. Your looking for the completion report at this point. I think its for 1002A. That number is a calculation of your what you own by the royalty contract signed by whoever in your family. The number starts with total acres in the section, then how many acres you own in royalty, then the percentage of what your family agreed upon ( usually 3/16) and that comes up with the percentage amount that you have personally.
Now, go to all images and find the 1002 A form.
Good luck!
I can't thank you enough, Tim. I will check out the 1002 a's and try to gather the information needed to move forward.