My sister and I have mineral rights in Kiowa County. The acreage involved is in T18-20S R51 West. We were contacted by Diamond Resources of ND. Their initial offer was for 5 yrs. and a 1/8 th royalty and $25 per net mineral acre. We have read with interest the group comments but we have taken no action yet. My sister lives in CA and I live in MA and it is difficult to get the local pulse and up-to-date info. We would appreciate any comments or guidance that anyone might have.
Same boat here.....live in WA. No action yet. Joined forum to get info.
Andi Mounts said:
Welcome to the Forum Andi. I hope we both can learn more. Are your interests in Kiowa County?Same boat here.....live in WA. No action yet. Joined forum to get info.
No, Lincoln Co.
I have also had a lease offer for property I have in Kiowa Co. T19 R49 (8mi SE of Eads) from McDonald Land Services in OK (has PO Box in Eads). Initial offer was 5yr primary @ $50 with 5 yr extension option @50, 1/8 royaly, or the same @ $25 & 15%. Niether option sounded too good and I have not accepted either. 10 yr total term is way to long. I normally get 3yr & 2yr option. The royalty is also low. Likely their client is giving them 25% and they will get the difference. The landman at McDonald said their clients prospect is for nearly all of Kiowa Co, seems a bit too general. I do not know but likely their client is Chesapeake Energy.
Has anyone else been approched by McDonald? Know who their client is? or other companies besides Diamond that are active in Kiowa?
I should clarify that my sister and I share the mineral rights so we each got an offer of $25 per acre so the total offer was $50 per acre. This was for 5 yrs with a 5 yr. extension at 1/8 royalty. This makes it more consistent with the offers other people are getting. Our offer was from Diamond Resources in ND. We do not know who they represent. We have not gotten any other offers.
Hi Harold,
Also, I did not mention that I only have a 50% mineral interest in the property. My $50 offer is for net mineral acres. I have 1,120ac, but only 560 net mineral acres. So it sounds like your offer was at $50/net minarl acre which for you (and your sister together) is that same as your actual acerage.
Since my last post, I did get a call from Diamond with an offer of $25/net mineral ac, 5yr & 5 yr @ 1/8 royalty, half of the other offer.
May want to call McDonald ( 832 512-0252 ) for a 'competitive' offer.
Have you had anyone else interested in your mineral rights?
Harrold Higginbottom said:
I should clarify that my sister and I share the mineral rights so we each got an offer of $25 per acre so the total offer was $50 per acre. This was for 5 yrs with a 5 yr. extension at 1/8 royalty. This makes it more consistent with the offers other people are getting. Our offer was from Diamond Resources in ND. We do not know who they represent. We have not gotten any other offers.
Hi Case,
Our Gross acreage each is 320.57 with a net of 80.15. Our offer amounts to $25 per net mineral acre each. We have had no other offers. Thanks for the telephone reference to McDonald. I must admit that the gross and net has me confused.
N Case said:
Hi Harold,
Also, I did not mention that I only have a 50% mineral interest in the property. My $50 offer is for net mineral acres. I have 1,120ac, but only 560 net mineral acres. So it sounds like your offer was at $50/net minarl acre which for you (and your sister together) is that same as your actual acerage.
Since my last post, I did get a call from Diamond with an offer of $25/net mineral ac, 5yr & 5 yr @ 1/8 royalty, half of the other offer.
May want to call McDonald ( 832 512-0252 ) for a 'competitive' offer.
Have you had anyone else interested in your mineral rights?
Harrold Higginbottom said:
I should clarify that my sister and I share the mineral rights so we each got an offer of $25 per acre so the total offer was $50 per acre. This was for 5 yrs with a 5 yr. extension at 1/8 royalty. This makes it more consistent with the offers other people are getting. Our offer was from Diamond Resources in ND. We do not know who they represent. We have not gotten any other offers from other companies.
I could give you some insight on things in that area. Please feel free to message me and I will send you a contact number to reach me at. Thanks
Ike, I would appreciate more insight on things in that area. Please send me a contact number. Thanks
Ike Taylor said:
I could give you some insight on things in that area. Please feel free to message me and I will send you a contact number to reach me at. Thanks
the groups could all be working for the same company. All the ones that have contacted me are brokers.