I’ve received two offers to purchase leases. I haven’t a clue as to what this language means. Any info appreciated.
One states
“$8000 per net Royalty acre. This offer assumes that each net mineral acre is subject to a 1/8th royalty rate.”
The other is
“…$10,500 per net mineral acre to purchase all or part of your mineral interest. This cash offer is based upon the minerals being leased at a 3/16ths royalty or greater.”
Guy, What company is making you this offer? We own minerals in another section in the same township and have similar offers. Thx
That would be Verden Land and KSE Minerals.
We just received a call from another company. I let it go to message, but think it is White Sale (or Sail or Tail). No specifics, just requesting a call back.
Anyone know the story here? I am a babe in the woods here regarding the whole royalty thing as I’ve been lazy and done no research. Just collecting random checks over the decades.
Your section 14 has increased density hearings at the OCC to drill quite a few more wells. That is why you are getting offers. Seems to be the norm when the cases are filed. Letters are sent to owners in that section and nearby. The amount of the offers is tied to the royalty of the leases, so a 1/8th royalty yields lower amounts than a 3/16ths lease. If you have current production and get checks, then you are leased. In my experience, the offers I have received have been far lower than the value of the future wells. If you do not need to sell, then hang on and wait for the increased royalties on the new wells. If you do need to sell, then always ask for more than they offer. There have been extensive conversations on the forum of the pros and cons of selling.
Thank you for the information. To my knowledge, I am not getting checks from Grady. How does that affect the offers?
I’ve had many offers over the years, but have been hanging on to royalty right and received maybe less than $10,000 total from all sources over 40 years. I expect the acreage I own is fairly small–whole lot of generations since the original owner so I will probably hang on for a few more years. I am 73 with no direct decedents.
If you are unleashed, then your offers can be slightly different. But if you are not in a hurry, your should have some new wells fairly soon and the revenue from them.
If you are in section 14, I think you should be leased and getting royalties on some current wells. Have you gotten all the OCC case mailings from Gulfport?
I have a ton of court papers from Benjamin J Brown and David E. Pepper law firms regarding requests and actions. I had thought they were all the Pittsburg property, but in researching an answer to your question, Gulfport is the top of the pile.
As far as I know I’ve not received any checks.
I have letters from Benjamin J Brown dated February regarding Gulport and now a pile received in April from David E. Pepper. Seems to be talking horizontal drilling.
M_Barnes,
Which resource is best to look for OCC hearings and notices?
Thx
Add to that other resources such as looking up which wells / geographic areas I own royalty rights in.
I tried to begin learning the Oklahoma database, but it turns out that the require browsers I don’t have. I’ll have to do a full update of software to make use.
You can use the Oklahoma Corporation website for free. They have an online guide on how to use it. Not very friendly for MAC users, but if you can contact the help desk they can walk you through it. It is a bit hard to navigate with some browsers. There are some subscription services out there, but pretty pricey. Pangaea and Drilling Info are two of them.
GuyBMeredith - You should be getting royalty checks on about 8 wells in Section 14-4N-6W. First from Vitruvian and then from Gulfport.
What is the best way to contact the company. Companies? Where does Vitruvian come in?
Thanks, Guy
Gulfport bought Vitruvian out, so contact them first. Send a certified return receipt letter requesting information on how to get into pay status. Explain the section, township and range and who you inherited from. They may need probate documents for proof.
Gulfport Midcon LLC- Division Order Department
3001 Quail Springs Parkwy. Oklahoma City, OK 73134