I have 80 acres in Blaine Co Sec. 25-17N-11W. I have been offered $4300.00 an acre. It was leased in April for 3 years at 3/16. Is this a good offer if I decide to sell. Would like to hear from someone. Thank you.
In my opinion, that is way too low. Given that horizontal drilling is increasing in 10W to your east and there is active leasing in 25 by a horizontal player, now is not the time to sell. Please read the Blaine Co forum discussions and comment wall for the last six months to get caught up on the action and a very similar question from someone else.
Just to add, my general "want to buy" offers in Blaine have been in the $6000 and up range. I ignore them.
How many acres do you have there? Does price depend on how many acres you have? I am really new at this so bear with my questions. Thank you.
1-10, so pretty low. Price depends upon the geology and not so much the amount of acres. Also, I have received quite a few offers to buy and then upon more research have found that multiple wells were planned to be drilled. Many companies just troll for land all the time and want to buy for cheap when they know the owner may not know about the upcoming activity. You have a good operator leasing in your tract, you might want to lease instead.
Looking at her original post, she says that she has already leased for 3 years at 3/16 back in April so leasing isn't really an option for her? Just because recent activity is going on in 17N-10W does not necessarily mean the same activity will go on or be as good in 17N-11W. It could be as good or better but the same chance exists that it won't. Since you seem to be in the business Mr. Barnes, you and I could both agree that the 10W Range is considered part of "the core of the core" however 11W is not yet. Could it be potentially? Maybe but it isn't yet which is the reason for the lower offer from said company I'm sure. Also since these are already leased, I'm sure we could both agree they are not as valuable to the buyer as they would be if they were open. When you say companies just troll for land all the time, I guess that could be true to an extent. There are those companies out there. There are also companies who purchase from hard working people that would receive a lump sum up front and not have to wait many years for the monthly royalties to add up to what the lump sum would be that they could receive today. Just a thought. If I own minerals (I do) I base what I'm being offered right now to what I would potentially make off of a (good) well "if" it's a good well and then base my decision on the amount of risk I want to take. I also don't sell every mineral I own. If I owned her 80, I may sell 60 and make my lump sum to do whatever I want to with and keep 20.
In general, I agree with you, but the additional factor to consider is that we are not talking about one well. With the potential of the stacked pays in Blaine and horizontal drilling, it "could" be one well to 12 wells, although I doubt it would be that many. Given who is leasing in that particular S-T-R and their track record of drilling, I think the risk of drilling is low although it won't be next week (given current prices, next year would be better). I also own acreage very close by and have received much higher offers, so based my answer on that and other knowledge of the area's pending activity. Yes, I have been in the industry for 35 years as a geologist. As the manager of our families' minerals for quite some time, I have noticed that in general, first offers to buy are quite low to the actual value that can be negotiated and are usually still low to the real value to the property. Everyone must do what is best for their situation, but the more information you have, the better deal you can make if you decide to make one with a legitimate company.
Thank u both for your input as I really don’t anything about it. So I understand it B Reeder if u sold u would only sell a portion. Is that right and retain some. That does make sense.
Joan I have sent a friend request to you. Please accept it so I can send you a private message.
Thanks,
Tim
Ok…I am new and having trouble figuring out how to post something!