We own the mineral rights in 2 sections with 160 acres in each section.
The location is: Sections 11 & 12-T14N-R15W Custer County, Oklahoma.
Our family has owned these rights for over 50 years. We have leased these rights 3 -4 times in the last 20 years.
Starting in June of 2016 we started receiving offers to purchase these rights. The offers started at $2,000.00/acre and the offers increased in value almost every month. In December of 2016 we received an offer of $8,000.00/acre.
We do not live in Oklahoma any more and we are wondering if we should sell or not.
Does anyone have any knowledge of the well activity in this area?
I wouldn't sell unless I really needed money, and don't forget taxes. Sec. 12 had anew lease for$1,200/a in 9/22/16, times the acres you have that's not bad also sec. 13 leased for $1,250 in the same time period.
We have leased it in the past but there is no guarantee on leasing again when the lease runs out. I guess it is a decision on if to take the guaranteed income by selling or gamble on continuing to lease over and over again. Wish I had a crystal ball. LOL
I have been trying to research what the production is like in the area. A lot of wells have sprung up in the last 10 years within a 20 mile radius of our property, but I haven't been able to get much info on them.
Why would anyone want to sell 320 acres of minerals that's been in their family for 50 years?
But, since you asked ... NO, don't sell! Don't ever sell your minerals unless you become destitute and have to apply for food stamps to survive!
As for the two family members who do not want to sell ... wise decision!
As for the two who want to sell ... download a Mineral Deed and make them an offer. See if you can buy them out.
Good luck,
Pat
P.S. It appears obvious to me that there is interest in this area or you wouldn't be getting offers. The $8,000/acre offer is only a negotiation point, i.e., a starting point.
just to add my voice to this discussion, as the other posters have said, there are a lot of reasons not to sell. However, the decision to sell or not is not one size fits all.
You need to think about a) would the money go to a better use? b) do I need the money vs. wanting the money? c) what is your age? do your kids want to mess with this? d) how would you feel if a company drills a very marginal well and you passed on getting your 1/4 of $2,560,000.
Now, if you decide to sell, you should post this, get in touch with a landman or somebody else to drum up offers. In other words, if you rely only on what you get as unsolicited mailings, you're probably leaving money on the table.
I've seen many people post on here and have no idea why anyone would say "Never Sell Your Mineral Rights". Never say never. That is foolish in my opinion. $8,000 per acre is an offer that appears to be above market value to me and may not be around long. If there is sentimental value or the desire to pass some on then sell some acreage and keep some. You don't have to sell it all but prices rarely get that high. Take for instance counties in north central Oklahoma when the Mississipian Play was hot around 2012. People were offered $4,000 per acre plus to sell and now they can't even give acreage away. The wells drilled were successful but had a lot of water come back with the oil and they proved to be very challenging. The hype died and everyone pulled out. Someone who needs to sell now would probably get $500 per acre at best in that area. An unsolicted offer is probably not their absolute best so counter back a little higher. I would be very surprised to see the price remain that high for your area.