Other family members are planning to sell their mineral rights in these Sections. I'm trying to decide. All are leased and under production with Devon and Linn. Does anyone know about what's happening in these areas, and what their current sales value might be?
What are they getting per net mineral acre.
As far as 10N-8W goes I only see 2 mineral deed sales so far in June that involve cash changing hands:
$7,500/NMA - section 5-10N-8W
$8,700/NMA - section 10-10N-8W
May mineral deed sales involving cash changing hands:
$200,000/Total amount (# acres not given) - section 9-10N-8W
$44,500/Total amount (# acres not given) - section 31-10N-8W
$3,000/Total amount (# acres not given) - section 6-10N-8W
$5,000/Total amount (# acres not given) - section 31-10N-8W
$100,000/Total amount (# acres not given) - section 9-10N-8W (also section 20-9N-6W)
$3,000/Total amount (# acres not given) - section 6-10N-8W
$2,000/Total amount (# acres not given) - section 6-10N-8W
$22,500/Total amount (# acres not given) - section 5-10N-8W
$3,357/NMA (Total amt. = $1,000 for .2979 acres) - section 6-10N-8W
Don,
Where do obtain this information?
The idocmarket website. That is where Grady County Clerk online records are now. You will have to subscribe to view the documents. Take the DOC fee and divide by 1.5 and multiply by 1,000 to get the total amount of the transaction. Divide that number by the net mineral acres (NMA) to get the price per acre. Sometimes the NMA are not shown so a price per NMA is not easy to get. You would have to go to the clerk's office and do so research. Or call one of the parties and see if they would be willing to tell.
Thank you so very much!
Lots of pending horizontals in the general township. The highest offer I have heard of is the $8700 in Section 10. Others in the range between the two quoted below. Always think to the future, not just today. What are you giving up by selling now? What can you pass to your heirs? Sales offers are usually low to actual value.
From a strategy point of view, you are held by production in some of the tracts, so there is no rush for Devon to drill extra wells now in a low price regime when they can wait a couple of years until the price goes up to drill those wells. The reservoir is sitting there waiting. On the leases, the companies drill their expiring leases inventory up with the first well and then hold them until better times.
The real question is less money but some money now or more money potential over a longer period of time. You have to think in decades, not days. Then put in your family strategy for being stewards of your assets and where will they do the most good. Think long term and strategically. The companies making offers are also thinking strategically.
Ms. Barnes offers execellent advice. I would only offer a suggestion based on a mistake I made. If you have family that decides to sell and you do not, considering matching the price offered and buy to keep the minerals in the family. Obviously everyone’s financial ability to do this is different but at least evaluate this option.
Great advice. Minerals is one asset I will never sell. Unlike land you are not taxed to own them. Over the years minerals leased have saved my butt more than a few times. Paid off major debt. I am trying to teach my kids the value of keeping them. Regards.