My Father has mineral rights in Ellis County sections 17, 19 and 20. Total of 20 acres. Recently he has received a number of offers to buy his mineral rights. My Dad is elderly and has a hard time understanding these issues and I am trying to educate myself on mineral rights so I can help him make an informed decision. I have been able to determine that EOG has the lease on 15 acres and Four Point the remaining 5. I will be reaching out to both to get copies of the lease agreements. Any recommendations on what other information I should be seeking? One offer was for $1,750 per mineral acre. Does this sound somewhat reasonable as a starting point? Thankful for any help!
Need the full section, township and range to help get an answer. There are many 17,19 and 20’s. If he is getting a number of offers, definitely good to slow down and find out what is going on. There may be pending drilling and it might be better to hold on and get royalties instead and pass the acreage onto the heirs. Or he may want to sell given his circumstances, but remember that there may be capital gains tax.
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Sorry thought I had responded already but must not have hit send.
Full description
Section 17, Township 18 North, Range 24 West - 5 acres Section 19, Township 18 North, Range 24 West - 5 acres Section 20, Township 18 North, Range 24 West - 10 acres
My Dad has since gotten another offer of $2,250 per acre
Thanks for any advice
Shannon
Looks like Fourpoint energy has a new well called the Word 19-18-24 2HA which had first sales on 11/14/19. The Division orders should be out in about March and payments in April or so. That is probably what they want, plus the royalties from the other horizontal wells That were recently drilled in 20 and 17.
EOG-The Little Turkey 1708 4H well is also about to pay out royalties. It was spud in section 20, but goes north into 17 and 8 -first sales 10/9/19. Little Turkey 17 3H is all in 17. First sales 10/9/19. Usually offers are based upon current royalties and any new royalties that are about to come online. The offers will vary according to royalty rate. Higher royalties get higher offers.
Holloway-Atha 20 3H first sales 1/31/19. Also EOG. Is he already getting paid on this one, plus the other two horizontals in 20? This one is new, so has more value than the older ones.
Three-four new wells .
Thank You so much for the information M_Barnes! I will look into if he is getting paid on these and get back to you.
Shannon
He won’t be getting paid on them yet since the six months from first sale is not up. But he should be in a few months. That is why he is getting offers.
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You should be able to search for and pull up the leases here: https://okcountyrecords.com/search/ellis Cost is $1 per page. Much less frustrating than contacting companies.
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