I have received a purchase offer for "up to $2500 per net mineral acre...evaluated on their current revenue stream" for rights on property currently leased but idle. Is this is a good price? Does anyone have recent comparisons?
Where are minerals located?
Sect 11, Twp 22N, Range 20W
I received a letter from Mayhawk Energy offering up to $2,500 for minerals in Woodward county.
That is the same company that made the offer to me, and I am looking for any recent sale prices by them or by other companies for comparison. It sounds like their phrase "evaluated on their current revenue stream" may mean their actual offer will be lower as the land is not currently pumping therefore not producing any revenue. I have also recently received a lease offer, and I wonder if the new interest is an indication that someone may be interested in producing again as they did some years back.
Is anything near there in production?
Elizabeth,
In responding to your inquiry, I ask forgiveness of any forum members if I offend sensitivities. I am only now realizing that my family was not knowledgeable when the last opportunity to lease came around...ouch!
Therefore, I hope to help other mineral owners, thru exchanging collected information. We mineral rights owners need to spread the word that... activity in southern Woodward Co. is picking up.
A decent producer came online (mostly oil), in southern Woodward county about 60 days ago. It is a lateral well (heading south), down to the Mississippian and crosses thru two sections. Please talk to your neighbors, ( especially in southern Woodward county), tell them the lease amount per mineral acre in the south-half of Woodward Co. is increasing with offers to lease up to $400 per. This latest well is an indication of potential.
Woodward Co. overall, lease per acre ranges from a low of $75 to $3250... with the average around $778. The higher amounts are in north-half of Woodward co. However, the value of southern Woodward co. leases is fast increasing.
Accepting $150 lease per mineral acre may be presented as a, "great deal for this area", however, you should be able to negotiate more.
Watch out for those options to extend and those all important clauses. I encourage joining NARO, to learn about clauses.
All this leasing activity information is available thru NARO. Also, consider making an appointment with the Oklahoma Corporation Commission. They have a Public Relations Team that will answer many questions about activity in your area.
Regarding SELLING mineral rights... I too, am interested on what others are getting, especially in south Woodward Co.
Selling at $2500 in your area seems a little low considering the renewed activity in today's world.
Thank you very much for the information...I am one of 3 in my family holding contiguous properties and do hope to use that to obtain highest possible options to either sell outright or lease out rights again (currently in last year of another lease). I really appreciate your input as I have little experience in this sector.
Thank you very much for your reply. It really helps to hear from someone else.