Can anyone provide information or point us in the right direction regarding Section 16, Township 16 North, Range 13 West (SW/4)? We last leased for $1650/acre at 1/5 but there was no exploration/drilling in the 3-year period and now the lease has expired with no renewal interest (Continental). We now have a purchase offer of $1800/acre. Thanks. Greg and Sharon.
Chesapeake drilled a good well in 2012 in the adjoining section 17, with very good initial production of 155 bl/oil and 2856 mcf/d gas. I don't know how well it has held up. There were a couple of other good wells in the Township. Things have been pretty quiet in Blaine County for the last few months, but there is a recent renewed interest by both Cimarex and Devon in the development of the Woodford shale. In addition to that, other formations are being tested in the general area.
I think if you are patient, on the scale of maybe a few years, that it will pay off very well to wait.
Greg, check the offer to see if it really is a purchase order (as in buy) or an offer to purchase your oil and gas which is a lease. Sometimes the wording is really strange and they really mean to lease.
Devon drilled in 17, so they might have some interest.
This new horizontal play is opening up acreage that was dormant in the past. I would get informed before selling-but then I don't sell at all. The very fact that you have an offer means that someone has an interest. First offers are usually low. Do some research on the company doing the offering as they are some bad apples out there amongst the mostly good apples.
Thank you, Mr. Barnes.
Mr. Anderson, thank you for your input. Very much appreciated.
JW Anderson said:
Chesapeake drilled a good well in 2012 in the adjoining section 17, with very good initial production of 155 bl/oil and 2856 mcf/d gas. I don't know how well it has held up. There were a couple of other good wells in the Township. Things have been pretty quiet in Blaine County for the last few months, but there is a recent renewed interest by both Cimarex and Devon in the development of the Woodford shale. In addition to that, other formations are being tested in the general area.
I think if you are patient, on the scale of maybe a few years, that it will pay off very well to wait.
Thank you for the update, Mr. Barnes. Although letter "offers" continue to flow in various configurations , what I consider a bona-fide offer came in the form of a Purchase-Sale Agreement for Mineral Acres, a Mineral Deed, and instructions to mail executed/notarized copies to Munson and Ritter, APC, the law firm that will handle the title search, escrow and the transaction in general. If we do decide to sell, is there an appraiser someone can suggest? We would like a current valuation as well as a date-of-death valuation (inheritance) for tax purposes.
M Barnes said:
Greg, check the offer to see if it really is a purchase order (as in buy) or an offer to purchase your oil and gas which is a lease. Sometimes the wording is really strange and they really mean to lease.
Devon drilled in 17, so they might have some interest.
This new horizontal play is opening up acreage that was dormant in the past. I would get informed before selling-but then I don't sell at all. The very fact that you have an offer means that someone has an interest. First offers are usually low. Do some research on the company doing the offering as they are some bad apples out there amongst the mostly good apples.
We used Edinger Engineering Incorporated Petroleum Engineers out of OKC. Mark McKinney was the Petroleum Engineer.
105 N. Hudson, Suite 600, OKC, OK 73102 405-232-6315 email [email protected]
He did the appraisals for my grandmother's, father's and mother's estates, so we have used him multiple times. I know there was a six month backlog when we did my mother's in 2012. Don't know what it is now.
Get your accountant to walk you through the estate part. The amount used for the engineering report was not the same for the estate.
Martha
Thanks Martha. I give them a call.
For many years we've owned several mineral rights in Kingfisher County but we recently inherited one in Blaine County. We're familiar with royalties but not so much selling Mineral Deeds (we're in CA). As soon as probate closed we received a letter offering to buy with a Mineral Deed enclosed. The total offer is $50,000 but we've never heard of the company (Yellow House LLC) and can't find a listing for them anywhere. The property is 10 net mineral acres SE/4 of 15-14N-12W in Blaine County. I'm wondering if anyone knows what things are going for in that area or who we might contact to see if this is a reasonable offer or just a lowball first offer. Since my siblings and I are elderly we're thinking that selling may be better for us than waiting for a lease offer. Any information will be greatly appreciated.
There has been a recent well drilled on this section, which you may not be aware of. Probably not a good time to sell for most people, but if you are elderly, that may be another consideration. I'll send you a friend request if you would like to discuss this further offline.
That offer is probably low. If you have no younger heirs, then selling is a possibility, but there are better ways to do it to get a better value than cold call offers. Friend me and I can help you. I neither buy nor sell.
Thanks, friended. For many years we've received royalties from 5 leases in Kingfisher and the past few years they've hardly been worth doing the income taxes on them. Linn Energy has the leases and now they are in Chapter 11 although it seems that won't affect royalty owners. So, we're also considering selling those mineral rights if there is any interest. I just joined this forum and already have learned some things and am trying to keep my older siblings informed about our options. Any information is greatly appreciated.