It looks like Marathon plans to drill a well on you guys. I do not know how many density wells they have drilled in this play. Continental seems to be the most active in-fill operator in that area.
So what does that mean if I have a lease with Unit Petroleum and my sister has a lease with Huston Oil Co.? And we have just received a little better offer to buy our rights from Echo Energy Co.
Did you sell to AOG?
No. We did not.
Thanks, would you be inclined to tell us what they were offering?
DR
DR if you friend request me I will tell you privately. I’m not sure I should say openly here. Were you approached by them also?
Friend request sent.
No but the next Township over
Urissa,
I do not believe there are any problems with mineral owners saying what we were offered for leases or purchases (someone chime in if this is the case). There are several landman and brokers on here that can get into trouble if we try to offer our services. That is why we have to carefully watch what we say. Even though some of us are actually mineral owners ourselves we don't want to get into trouble on the forum. Sometimes it makes us appear secretive or sketchy with our responses so I wanted you to know that we are just trying to abide by the rules of the group. Hope I don't get into trouble saying this, but I think new people to the groups don't understand when we can only offer a limited amount of help with an issue.
Dear Miss Urrisa,
Miss Darla is correct. The forum is not intended to be used to solicit business but rather to share information among persons with mineral interests.
Hi Urrisa,
My sister and I had inherited a bulk lot of interests, my sister sold her share and I kept my share, depends on your financial situation however for me I’d rather keep the income through my “non earning” years as I’m in my late 50’s now, I then have the option to sell one now and then as I need funds. Now is a really BAD time to sell as basically they will require the last 6 or 12 months check stubs and it’s not been good for the past 12 months, (let’s say your taking 3K per month) the best offer I have ever got was 60 months, this depends on how many years they can get out of the well, so the offer is 180,000.00 ( this is what you would have received over the next 5 years if the rate stayed the same as the mean value over the past 12 months) if you had an offer of 60 months they would estimate at least 15 - 20 years productivity from your interest, an offer would be for them to make a profit, it’s a gamble depends on what the price per barrel is, recently we went from $120 per barrel to $20 per barrel, it’s currently on the rise and sitting around $50 per barrel. Like any mineral in high deman prices are up and down, I believe that we will be back around $100 per barrel in less than 5 years, that’s purely my best guess.
Good luck and I hope my story has been of some assistance.
Scott
This scares me to death! Our offers arent near $17,500 per acre but we are told they could reach double of where they are now ($5000 range) but this sounds like Deal or No Deal- Seriously- I don't know how to play the risk this involves! Would sure hate to hold out for more too long and see it go away!
I know Terry. It is scary both ways. If we sell now we risk the chance of getting higher bids or have it make more money if more wells are drilled. But if we don’t sell we risk the chance of the bids going lower and/or wells not being drilled and/or not producing. It’s a gamble both ways.
Urissa, if you could possibly wait for the lease to expire, I would do that before I sold anything. In the lease you are conveying up to 82% or more of your oil and gas. If the lease expires with no drilling, you get those minerals back. When you go to sell something, it's better to own 100% than it is to own 18-25%. When the lease ends, you own 100% again.
Many buyers would lease your acres again anyway, or be force pooled but the thing is, they may/probably would be able to negotiate a better lease than you could, and that adds value.
You mentioned that you have other acres in the area. Each set of minerals should be examined on its own merits as the geology changes across the county.
Never accept the first bid. It is most always very low to the actual value of your acreage. They just want to see if you will do it. What is is "worth" is what a willing seller and a willing buyer agree on. However, the buyers have more information than you do, so you need to get more info before you sell. The true value is what the current potential of the minerals are and what the future potential is as well and that is what most folks forget. If you decide to sell some after getting informed, then you need to get at least three bids and get some negotiations going. If you would like to friend me (use the blue icon), I can walk you through the steps to learn more. I neither buy nor sell, but am willing to share my decades of experience as a geologist and a minerals manager and get you further along your path before you make a decision. Very wise to ask questions! There are many good folks on here who can help you with advice.
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Thank you for your story. It has been helpful.
Currently have an expired contract for Section 18 Township 8N Range 6W that was for $1,000/acre. WHAT IS GOING PRICE RIGHT NOW - anyone know?
Thank you for your information. We were made offers by 3 different companies so far. AOG, Echo Energy and RPL Petroleum. The most recent offer is at $9,000 per nma for section 6-6N-5W. And $8,500 for 1-6N-6W. And $6,000 for 31-7N-5W. All in Grady County, OK. Anyone know if these are fair prices?
Thanks for your help.