New user here. I recently received an unsolicited offer to purchase my rights in this location for $4000/acre. The company is “Dry Creek Energy” of Edmond, OK. I was hoping for any input on whether this is a reasonable offer and whether the company is reputable. Thanks in advance!
Most offers are due to someone knowing something about future activity and they hope I don’t know anything and they certainly plan to make a profit off of me. Most all of my offers have been low compared to value of what was about to happen. In your case, do you have a well that was drilling or is about to be drilled and you are about to get paid on it? Unsolicited offers are rampant these days as quite a few companies are trying to buy up acreage that has value for horizontal drilling. I file those offers in my files and watch them creep up over time.
Hi, I just got an offer to sale my minerals in section 2 3-2 west in garvin county. Is this fair or can I lease. I heard you can lease your land also. -Ann C
The offer to buy is probably not what the value really is. Read the post above. You can leave if you are not leased already. What were you offered at what royalty? I will start a new thread for you as this is for 30-4N-3W and the geology may be different.
I have minerals in 4N3W (sections 28, 33, 34 and 35) that I am in the process of researching to sell after getting an unsolicited offer by phone. That offer has shifted between $1,000 and $2,250 per acre. I’m not sure but I think I have a couple hundred net acres (500 gross acres). Please include me in this thread.
Thanks so much for your time
jbascomrob, If I had a half million I would buy those acres from you and resell them for at least three times your high offer as stated. Go to okcountyrecords and pick Garvin County then look at your sections. I am pretty sure you will be able to see mineral deed sales and resales and even sold a third time. I know for a fact that 6 miles to your north some mineral acres were sold, first sale, for $7000/nma. And that was 1/8 hbp royalty rate.
John,
That price seems relatively low. Do you happen to know what royalty your minerals are held under? That can be a factor on pricing.
I own minerals in this same area. I was under contract for $5,000 a month ago and have not been able to get a hold of the company since. Have not received an offer from that company as of yet. Doesnt seem like the offer is too low although it never hurts to counter.
jbascomrob
We have minerals in section 29 4n-3w where they just finished the Sierra well about 7 or 8 months ago. I’m sure ours is held by production at probably 1/8th. We don’t know how much we own as it’s been split up several times between heirs (probably not enough to interest the buyers) and we have not received our division orders or any offers to purchase. I’d be interested if someone might input as to whether they have received any division orders on this well or offers on this section (drilled from section 32 I believe). We probably are entitled to the 12% interested on that well but whether we have enough to bother with I don’t know. The operator on the well is Casillas. Has anyone else found them slow to pay their royalty owners? I figure our checks might be so very small they might have to stack up for a while to be enough to send (but I don’t know that) but aren’t they still suppose to send us the DO’s?
The Sierra came online in December of 2018, so you should definitely send a certified return receipt letter to Casillas requesting interest of 12% and a Division order. Even if you have small acreage, it is important to get what is owed to you. They should have the survey done for the splits between 29 & 32, but I do not see it posted yet.
Hi Linda, I saw a report yesterday from Casillas. New well info sec 29-04N-03W. Drilling started 9/14/18 well completed 11/11/18. Results reported 8/6/19 total depth 18,468 ft. Oil production 459 Barrels per day and 6,246 MCF per day. I contacted Casillas land man and he said they are still waiting on division order title opinions to properly set up decks. Not sure what a deck is.
A deck is the list of the mineral owners (that have clear title) and their decimal amounts that are approved for payout. Others with clouded title will have to get things fixed in order to get paid. It can take many months to get the hundreds of titles tracked down.
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CONNIE- a “deck” is a term for a computer spreadsheet that shows all parties that are record title owners entitled to receive revenue. The pay deck includes working interest owners, overriding royalty owners & mineral owners and others that are entitled to production revenue. This deck sets forth each parties decimal interest in the production. If the record title owner has clear title, as determined by the division order analyst, that entity will have a “P” next to the entry- meaning Pay. If the division order analyst is not satisfied with the title, an “S” will be placed by the entity, meaning Suspend. The DO analyst will then send out DO’s to all those parties to confirm their interest and if they are in suspense, the DO analyst will set forth what needs to be done for the party to be put in pay status. The DO analyst has his discretion as to who is in Pay or who qualifies to be paid. It is subjective depending on the title defect and the quantity of the interest in question. Respectfully Todd M. Baker
Thank you M Barnes and Todd. It’s going to be a while on this one. I think there are 200 plus parties with some type of interest.
The term “Pay Deck” originated in the days of mainframe computers that ran on punch cards i.e., the deck of punch cards run through the computer in order for the computer to cut computer checks.
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Thanks M_Barnes and connieg for the very good information!
Anyone know a mailing address for Casillas to request the interest and the DO? If you were us would you wait another couple of months or is there some sort of Statute of Limitations on this kind of thing?
Hi Linda, I have been informed by Casillas senior land advisor, payment will be distributed after division order title opinion is complete and will be made thru the 1st date of production. Hopefully we all have our paperwork filed in Garvin County correctly. The address attached to the emails I have received is 401 South Boston Ave Suite 2400 Tulsa OK 74103.
I usually wait eight months after first production to fuss. First of all, if the well is two sections, it takes longer to do the Division Order Title Opinion. (DOTO). If they are late, they owe me 12% interest if my title is clear. Works for me! Also, if the well comes on line too close to the check cut date, that might delay it another month due to the timing between the Division Order department and Accounts Payable. They still owe the interest, but we have to ask for it. When you do request it, send it by certified return receipt letter and keep a copy of your request letter and the return green card so you have a paper trail.
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