I have mineral rights in McClain county in Sec.30 -8N-4W. Over the past couple of months I have received letters and phone calls to buy these rights. Yesterday got a message from United Energy asking about leasing these rights. My questions are… Anything happening in this area? Anyone know anything about United Energy? Any thoughts on what a fair offer should be concerning time frame, per acre and % based on per acre of share. Any feedback would be appreciated
Newfield is in the area. Now is not the time to sell. Hang in there for leasing for horizontal wells. 30 is partly in the city of Blanchard, so that could be an issue with well placement. They will probably go for multi-unit wells starting from outside the city. United Energy is probably a contracted land company working for someone else. Ask them who they are leasing for. There are no new leases posted in 30, so hang back for a while. Not a good idea to be the first horse out of the gate. This make take a year or two to develop.
A recent pooling in section 29/32 went for $2000 3/16th, $500 1/5, $0 1/4. So something in that ballpark range. I would go for 1/5th or 1/4 myself. There may be multiple wells over the next few years and the higher royalty is more significant than the bonus in most cases.
Read over the last few months of the McClain forum to get a gist of what is going on. Be cautious about the lease clauses. Come back before you sign anything!
Thanks. Talked with someone from that company and they are a go between company. I asked for a contract to see as I do know from reading things in this site that one needs to have a couple of clauses in place to protect themselves. I was told they’d email something tonight or tomorrow.
Mr. Barnes, exactly who are you and what credentials do you have to be "offering advice" to mineral owners and what is best for them? Do you know their situations? Would you agree or disagree that though some areas of certain counties are "hot," there are other areas within the same county that aren't? Sure, when the Scheffler Well in Section 9 came in, it was a great well but what's it producing now? I bring this well up because at it's date, it was the biggest in the whole county but I'm sure you already knew that? Would you agree or disagree that minerals are worth the same amount in that section as they are in Section 12-16N-13W? I'll wait for your response before I make my decision as to your competency.
B Reeder,
To answer your first question: I have a bachelors in geology and management and a masters in geology, am a Certified Petroleum Geologist, Licensed Texas Professional Geoscientist and a Certified Minerals Manager. I am a fourth generation minerals owner and come from a family that has been in the oil & gas business for almost 100 years. Six of us are/were practicing geologists and several more are environmental scientists. I personally have 38 years in the business and have worked in domestic and international exploration and production for a major oil company for nearly 30 years (including Oklahoma) and am the minerals manager for three small family owned LLCs which own mineral rights in many states. I am a delegate to the American Association of Petroleum Geologists and have been for many, many years and am quite up to date on all of my continuing education requirements. I attend both geology technical meetings and National Association of Royalty owners meetings both on the national level and the state level to stay current with both the technical and royalty sides of the business. I often hear about upcoming trends from the technical side before folks on the royalty side. Hence, some of my comments are based upon perceived future value of properties.
If you have read my posts in many counties, I offer advice based upon the particular question that a person has posted and only if I have expertise in that area. I quite often recommend not selling, but often mention that each person needs to do what is best for their own family. Certain areas of certain counties are definitely "hot" compared to other areas. It all depends upon the geology of the area, the technologies in place at the time, the market price of oil and gas and perceived future development.
Your post here appeared on the McClain county site (not sure why), but your comments seem to refer to Blaine county. There are quite a few wells named Scheffler in Blaine county. One vertical Scheffler well was in 9-16N-11W. The value of minerals in McClain county are very different than those in Blaine. Most likely the value of minerals in 9-16N-11W are different than those in 12-16N-13W since they are quite a few miles apart. Would you like to move the discussion to Blaine county where it might be more relevant? Blaine has quite a bit of activity right now in several reservoirs.
The "purchase value" of a property is the value that a willing and knowledgeable seller and and equally willing and knowledgeable buyer have agreed is the value and is quite subjective. If one is more knowledgeable than the other, then the actual value of a property may be quite different.