My family was recently contacted by Carnegie Energy in an attempt to purchase my mineral rights from these sections. My Aunt, who has 2x the rights that I have, sold hers for $14,000. I do not think she did any due diligence. I am trying to do mine, and Carnegie is only leaving the offer on the table until August 1st. I’m looking for any insights into the value of these sections.
What’s the range? Ex. Section 27-19N-?W
Sorry, Township 19N Range 9W 27,28,29
Hello, We own some interests in Section 29 & 31. You say your aunt received $14,000, is that per acre or the total amount? The main thing is how much they offered/paid per acre. Knowing how much they offered per acre is the starting point. We’ve received some offers but things have changed, last year the offers were higher now they’re lower. People here on the forum might be able to give you more information if we know the offer per acre.
$14,000 was the total amount for the sale of her rights. The rights of mine and my brothers rights combined, equal what her total rights were for the sale. So they are offering 7k to myself and my brother. I could use the money now, but I am put off by the short window for the offer being closed August 1. Although part of me wonders if I called on the 2nd if the offer would truly be rescinded.
OK, I guess you can figure out how much per acre that ends up being. There are a lot of variables such as % interest, current lease (if there is one), production (if there is any) and whether you’re getting royalties and how much. As I said, things have change quite a bit over the past months but the last offer I received was $11K/nma which I considered too low at the time.
You need to know the price/ac and what royalty that offer goes with and how many acres you have. Section 28 has a pending horizontal well which is why they want it. You would be giving up any royalties to that well and any future wells. There are pending horizontals all around you. They are hoping you do not know that and will blindly sell to them. Most offers are quite low to actual value. Anyone who rushes me gets totally ignored. Remember that you may have to pay capital gains tax on the sale. They always “forget” to tell you that. You also pay taxes on royalties as well.
A few years ago Carnegie called me one evening and offered me $750.00 an acre for some mineral rights I had in Kingfisher. After calling the OK Corporations Comission I found out a company had approval to drill there. I ended up selling for $10,500 an acre.
Not an uncommon story. There are always mineral buyers who are following drilling permit applications, looking to purchase minerals “ahead of the drill bit”.