Randy,
The language in your deed is suspect. While I understand the intent, I suspect there are some issues.
As far as leasing. You searching out someone to lease when there is not active leasing in the area, will not likely be favorable if drilling occurs. Short term in leasing is usually 3 years.
Send me a friend request and I’ll share my title cloud concerns with you privately.
Randy,
My family and I are “not sell” people, as the minerals have been in the family for multiple generations.
Most of our minerals are in Carter county, but are not close to 4 South & 3 East so I do not know the going lease amount there.
I do not know if it is a good deal or not, but in 3 South & 3 West we have been leasing for around $1000 an acre with a 3/16 royalty (to Continental Oil).
Our highest offer to sell was for Sec 10 & 15, 3 South & 3 West was for the Dixon well and it was $10,000 per “net acre”. I never checked into seeing how valid the offer was since we are “not sell” people. The Dixon well is producing good oil & gas so that is probably why the buy offer was high.
Curious question to anyone; What is a “net acre”?
Example:
If I have 5 mineral acres at 3/16 royalty and the offer is $10000 per “net acre” then would I receive $50000 if I sold?
Or does the 3/16 royalty come into play?
Most of our offers to buy say “net acre” but I am just not sure what they mean by that.
Thanks to anyone for you “net acre” help!
Larry
Thank you Larry and Rick. I completely understand the legacy desire. If I remember the story correctly my grandfather on my mothers side bought the land years and years ago. And then left it to his 3 kids, my mother and her 2 brothers (my uncles) I think, not sure my uncles (one has passed away) sold all of their share/interests a while back. When my mother died her share was left to my father in a trust. Of which I was a trustree. Severl years ago we transfered ownership from my father via the trust to me, my father and my sister. Where it has stayed since. I would asume I need a local attorney to properly refile the property with the county removijng my father from ownership and showing only me and my sister. R. D. Williams may have attempted to sign a new lease prior to the old one expiring but I wouldn’t know and dad didn’t have all his records and/or faculties working well. So shoudl I try and lease it for the short term? I ask cause it seems like sitting with no lease the property isn’t working for me. Yes I do understand over the long haul it is appreciating. But I generally think investments should be actively working for their owner. Even small returns are better than nothing. But I say that beng completely ignorant on good and wise moves concerning mineral rights. So I am trying to learn. Thank you
Hi folks. I hope I am in the right place to ask my questions. If not please forgive me. My family owns the mineral rights of 190 acres in Carter county. Up until this year my father managed the property. He passed away last year and so now it is up to me. It was leased to R. D. Williams until October of this year. So currently it is not leased. I have had numerous purchase offer letters sent recently as well as lease offers. I know nothing about the value of this land. Is it better/smarter to lease or should I consider selling? How would I find out the value? Sale or Lease? Do I need to list the really long legal description? Any and all ideas and suggestions would be greatly appreciated. Thank you. Randy
Rick, Thanks so much for the large amount of advice and timely response. OK the property was in my name, my sisters name and my fathers name jointly. It has not been update (refiled) with the county to remove my fathers name and show just me and my sister as owners. It is Section 14, Township 4 South, Range 2 East. Neither I nor my sister has a personal “need” to sell. My sell or lease question was really centered around which is the smarter move. Meaning some investments are hang on to for the long haul and some you move out quicker. Maybe this helps. Thanks
Clint - Thanks for the help im ok now. Sid
Larry,
Your calculations are correct based on owning 25.6 acres and the offer would be for $256,000. However the description of the track may not be correct. As far as I know it is pretty rare to have a tract that is the complete section in this area. We have an interest in about 100 tracts. Most were parcels obtained in the 1910s-1930s from Indian grants or purchased from the government or tribes. All are partial section descriptions. But yours may be different.
Rick Howell thanks for the information
Randy…yes what is the section and township?
I was looking on the Commission web site … anyone seen any report on Dixon’s Nov. Production. I know Oct was 6300 ish …
Bob, Section 14, Township 4 South, Range 2 East.
Larry in net acres…it is very normal for people to hold undivided interests. If someone owns 160 acres and passes it to 4 heirs, each heir owns a 25% undivided interest in the 160 acres, or 40 net acres each. When you have several generations of divisions, you can have a large number of people with undivided interests in one tract. that is why the legal description may indicate more acres than you actually own. As for purchase and lease deals…who knows now with the crash in oil prices. Before the crash, people were getting larger bonuses for 1/5 royalty and even in some areas bonuses with 1/4 royalty. But leasing activity has had the brakes slammed on in some places for now I think. As for the Dixon well, on a 3/16 royalty, and based on the first two months production, it would probably generate $2,500 - $3,000 per acre in royalty over 15 years (based on $55 oil). But it is a good well, so that means that 5-8 more wells are likely in that unit at some point.
Bob Titley, thank you for your information, as it is always good for me to learn. so your information is appreciated.
Larry
Seasons greetings to all. Thanks to all for the help and advise you gave me the past years. Sid Eby
Happy New Years to All … May all your Wells be good ones…and may you have good health to enjoy what this year brings …
Looking to lease acreage in Carter County. Please send any acreage available for lease to [email protected].
Thanks for Info …
Newby question / Have in looking at overall production reports how much a drop has occurred over last 60 days in carter County ?
Generally with the horizontal wells, you will see a production decline of up to 60% the first year, and another 40% the second year. Then it starts to flatten out…so when you see those first checks, consider them like one time bonuses, which won’t repeat at that level until they drill more wells. The Poteet well in Stephens is almost 3 years in production now. Its first full month in March 2012, it did 7,000 bbl oil and 194,670 MCF. gas. In 2013 it averaged 706 bbl oil and 71,579 MCF per month. June 2014 it did 5215 BBL and 62,398 MCF.
Steve,
Most production sites that are available to the public are four months or more behind, so we won’t be able to search that info for a couple more months. Folks will have to look at their own stubs which will be about a month or more behind for oil and two or more months for gas:
For example the total of all of OK oil on EIA is: from October-up from September
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFP…
Gas from OK: also from October, up from September