I have 2 offers to sell. Being the third generation to have these rights, I am not sure if I should sell? From reading and research, mainly gas is coming from this area. Just wondering if anyone has information about possible oil? In the 70’s they did find oil but shut it down quickly and it was probably not a deep hole.
Lori, do you mind sharing what you are being offered for your minerals? As a general rule, it is a good idea to consider keeping the minerals in your family, but there are times when it makes sense financially because of the large amounts of money being offered. Or you could just lease your minerals if you haven’t already. It looks like this is right on the edge of a pretty active oil exploration play. There are wells permitted to drill just a few miles to the south of you but there aren’t any new producing wells to show how good this fringe area will be.
In 24 9N 4W, I have been offered $6500 per acre lots of times. I have a 1/5 lease there now. I think a lot of companies figure out what the company “in the know” is offering and they send out letters offering about the same amount!
Hi thanks for responding. I do have a lease on this property for 3 years and it was settled in September 2018. In December and again in January 2018 the lease company proposed 6500.00 an acre to purchase. I do not need or have to sell and I think this offer is a little low. I am just wanting to make a smart decision as I live out of state and not educated in this area.
I think the offer to purchase was low because just a couple of sections away, $6250 was offered to lease at 3/16ths.
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Thank you for your response. I think I will just sit and wait.
I agree, that sounds pretty low. A good offer should be based on geology, reserves, and cash flow. I would think you should get double that if the play expands north a little. Down the road, if you decided it was in your best interest to sell, there are a few trusted companies I can refer you to.