Hello everyone, I too am glad I found this place! I was recently contacted about purchasing my mineral rights in Stephens County. I have rights in one non-producing section, Sec 15 - Twn 1 N - Rng 4 W pretty sure this is part of a recent pooling and no drilling is currently going on.
I also have a lease with CHK on a producing section - Sec 22,27-1N-4W for which I receive the occasional royalty check.
Does anybody have a ballpark of what these may be worth? Anyone have any experience dealing with Broadmoor Land and Mineral?
Any advice/pointers would be greatly appreciated.
Thanks,
Frankie
Frankie, I'll see what I can find out but I'm pretty sure 1N is just across the line in Garvin County. I'll get back to you afterwhile.
Unless you need the cash right away I would hold off for a while. On the west side of the township immediately north of you one of the better wells of the southern part of this play just came in, the Poteet well. The trend is NW-SE and your section 15 is just to the west of the main trend line. If it has been pooled the next step is a permit to drill which is good for one year. Things move slowly at the OCC but it looks like things are beginning to happen with yiour section.
If you care to tell us, what was their offer? I know these people work to get it as cheap as they can because they are going to flip it to a big operator for cash and an override. Less cash to you means more profit for them. I am not familar with that company but have been around that sort for many years. I am in the Oil business and have a Geolpgy degree from OU. I am currently exploring in south Texas but have mineral interests just esat of Chickasha.
Good luck with your interest whether you sell it of keep it.
Thanks guys, I really appreciate the help. I was offered $2300 for just the non producing in sec 15. He didn't know about the producing sections so I am waiting to hear back on those.
I was definitely under the assumption that I probably had a little negotiating room. The guy seems legit and he's all over the internet so that gives me some piece of mind.
I live in Las Vegas, NV, I wish I lived closer so I could see what the heck I'm even talking about!
Thanks again, Frankie
Frankie, I stand corrected I was thinking 3N. I looked at the Pooling Order and for the life of me can't understand how Chesapeake can get away with pooling for $350-1/8! Sections in 2N/4W are pooling for $1500 and up.
I agree with Don I wouldn't sell unless the money is big!
I wish I knew more about this stuff. Those are some pretty crazy numbers. I have no idea about the pooling, I've tried to get info from Chesapeake but they never have any solid answers.
Thanks again guys, I really appreciate it.
Frankie,
Are they offering $2300 a net mineral acre? Or 2300 My family has interest in the CHK Lorre 1-27H also. (our rights are from section 22) and rights to other sections in the area.
One of the older wells that used to produce in that area had the Newman Family name in it. Denver Newman-Goodwin Sand unit.
You know your situation better than anyone. Some of this area could have some great potential. Don gave you some very good advice. You always have to also consider that things could cool off and the price drop. Regardless, do quite a bit of research and know as much about it as possible before you commit to selling anything. In my limited experience, I have seen several of these offers show up and I didn't think any were worth considering.
Thanks for the reply, Rick.
He got back to me, for sections 15, 22, 27 - T1 - R4W, he is offering me a TOTAL of $2825.00, he offered $2300 just for 15. From what I am understanding, sounds like maybe I am being lowballed?.
I guess my question is, is section 15, 01N, 04W 155 acres? That's what I am seeing on my lease from CHK. If so, does that mean I own the mineral rights to 155 acres of previously undrilled land or what?
Yes, my father was born in Duncan, I went to a family reunion there about 35 years ago, pretty crazy place back then.
I'm actually in escrow on a new house so the money would come in handy but at the same time, I don't want to be taken advantage of.
Thanks again for the replys, I really appreciate the insight.
I would talk to Brad Odom. He is a member here.
Thanks for the info, I sent him a request. I counter offered and he accepted, $3500. It looks to me like the drilling permit expires in September, not sure if that's a good or bad thing. The bottom line for me is that I'm buying a house and feel I stand more to gain from that than I do the mineral rights.
Frankie,
It is hard to say if you are being “lowballed” with the information you have given.
Keep in mind the he sought you out. More than likely they are looking to make a short term investment on the hopes of flipping it. They may have to do research on thousands of records to find 50-60 people who one rights. They make offers to these people and hope that 5 or 6 are interested in selling. I’d say most that do sell take what is offered or negotiate the offer and never have someone independent take a look at it. In many cases the sellers don’t even know what they have. The same things happen with leases.
If I walked up to you in the parking lot of the grocery and said, “nice pickup, I’ll give you $5,000 for it,”, would you take it? Most would not, they would see what it was worth and do a bit of research. (or already know what it is worth) Yet in this “industry” many take what the “nice” stranger offered.
Many of these guys are honest and many are deceiving. But even the honest ones are in business to make money. Consider the owner of the convenience store. He sells you a bottle of water for $1.59. The same bottle of water may be found elsewhere for $0.79. Did the convenience store owner do anything wrong? The have costs to take care of. That time at the courthouse researching costs time and money. But as a seller, doing some homework may get you a bit more. In some cases it may take investing a bit of money to do so. Some are not willing to do that, and I can understand that.
Anyhow, I don’t mind trying to help you figure some of this out. But the best advice I can give you is don’t sell until you know 100% sure what you are selling.
Do you know how many acres you own? In each section?
The check stubs you have from CHK, does it show the Lorre 1-27H? I have division orders for this well and I don’t think yours is listed. I think there were 3-4 Newmans.
On the house you are buying $3000 at 3% interest will cost you $90 to wait a year. You live in Vegas, take the gamble and wait a few weeks! If you make an extra $1000, you made 10x the $90 you risked!! J I don’t think the $2825 number is going to drop in the near future.
Rick
I hear you Rick and I agree, part of the problem is I've owned this stuff for years and have yet to understand it. It gets pretty frustrating at times so I really appreciate your help!
Yes, my last stub from Feb '12 says Lorre 1-27H
Where can I find out how many acres I have? I know the Sec 15 area is just under 3 acres.
I got them to come up to $3500 for all of it...
Thanks again,
Frankie
Oops, I didn't see that you posted you had already accepted an offer.
I would have been interested in taking a good look at what you had since we have interests in the same are.
Good Luck on the new house, Frankie!
Our messages are passing! :) Where did the rights come from that you are getting paid on for the Lorre 1-27? What RI does the stub show? Do you know what the lease RI was? 1/8 or 3/16. I might be able to figure that one out.
Some of the deeds might show.
If I remember correctly the Lorre 1-27 does not cover the entire section in either 22 or 27. So you may have interest in either or both sections that are not producing. Do you have a copy of this lease? I see it on file with Stephens Co, but cannot view that one.
Hi Rick, yes we do!
It's not a done deal yet, I need to confirm my acreage for him and myself.
Is there any way to tell from a check detail? Can't I search an assessor website or something like that?It says section 22,27 on the detail, I'll have to see if I can locate the lease, it's with CHK and my best year was 2008 where I made close to $900.
Thanks again.
I just realized The Lease names are Lorre and Joann
I inherited all of the rights from my father, my family had a large farm in the area going wwwaaayyy back.
I grabbed a copy of the division order when I left the house this morning. I had just glanced at it. Now that I look at it I only have a partial.
There is not really a easy way to find out. The assessors office deals in surface rights in Oklahoma. There are some ways to get some clues short of a title search.
Do you know James, Jerry, or John Newman?
Gotcha, the purchaser said that in cases of smaller interests, it's not worth spending the money for a title search. I'm going to go through my files and see what I can come up with.
Unfortunately, I don't know James, Jerry or John. I suspect they may be distant cousins as I know I have a lot of them down there.
That could be very well correct. And they price their purchases accordingly with the risk they take. I have had title ran on several sections of property we have. They were only running our ownership so it wasn’t that bad. But it was still $200-$1500 a section. You never know what you might get into. I’ve done some title research myself in Stephens Co and a few others. I feel I have more knowledge than most mineral owners and I did not find it an easy task.
Let me scan a division order and you can take a look at it. I may have a full one at the house.
What is your decimal interest on your stub? The column on CHK stubs is titled “Payment Decimal.”
My payment decimal on my stub is .00028823
All 20 listed in this division order show to have 1/8 RI. Based on that you would have about .922 acres under that well. That well only covers 400 of the 1280 acres in those 2 sections though. S/2 S/2 of section 22. N/2 NW/4 and NE/4 of 27-1N-4W.
Since you own rights in 15, you could easily own rights in section 22 not covered.
The section lay out like this
15
22
27
I'll have to post up that DO in a bit.