Hi all,
I recently inherited some mineral interest rights in Pittsburg Co OK in section 23-5N-15E and am looking to lease it out. I have been in contact with Red Mountain who said they are not leasing in that area at this time, Reagan who were looking at making a buy out offer, and Sanguine gas who said they had turned most things over to Red Mountain. Does anyone have any other thoughts on who to contact there? thanks!
As a general thing mineral rights leasing is a ‘we’ll call you, don’t call us’ kind of thing. Also generally a lease isn’t very lucrative, it’s production itself which is more so. If a company plans on well they will contact you as long as you are in the records somewhere. Also if these rights have been in the family for many years, like since the 1920’s, being passed down, you very well might not actually be in line to get distributions from production unless, as I understand it. the wills have gone through probate.
Sorry to be a wet blanket and actual experts may well dispute the details of all I have said. I am just saying don’t imagine your going to be moving to Beverly Hills.
As a general thing mineral rights leasing is a ‘we’ll call you, don’t call us’ kind of thing. Also generally a lease isn’t very lucrative, it’s production itself or outright sale of the rights which is more so. If a company plans on well they will contact you as long as you are in the records somewhere. Also if these rights have been in the family for many years, like since the 1920’s, being passed down, you very well might not actually be in line to get distributions from production unless, as I understand it. the wills have gone through probate.
Sorry to be a wet blanket and actual experts may well dispute the details of all I have said. I am just saying don’t imagine your going to be moving to Beverly Hills.
Thanks Robert :)
We have finished probate in OK which was a long process. Lots of the companies seem to want to buy, nobody yet has been interested in leasing. Definitely not planning on moving to Beverly Hills :)
The offers I receive to buy are hoping for a cheap deal.
Robert is correct as a company has to have a geology work up and usually seismic before they decide whether or not to lease minerals for a drilling prospect.
Don't discount selling. I and 2 sisters had fractional acreage and one sold the rights, for a lower amount than I subsequently got offers for, and got about as much as the actual production payments gave us on 2 gas wells. It's a business decision of course, a bird in hand sort of thing.
To some extent this mineral rights thing, the buying of them by third parties, is about reselling them to suckers. To put it unkindly. Unless your family was local to the property just think about it being bought buy Uncle Joe all those years ago. It was a rank speculation, not a proper investment. If someone wants to buy it fine of course.
I looked at Section 23 (and the adjoining 8 sections) in Drilling Info. I notice there is an inactive Unit Petroleum well in the Southeastern quarter of Section 23; and both active and inactive wells in the other sections, mainly to the south. Unit Petroleum and Mustang Fuel are the operators, and I would think they would be the most interested in leasing. You may however be currently leased to Unit, because of the well already completed in Section 23. It last produced in December 2016.
Travis, what was the name of the ancestor you inherited this property from? I'll check OkCountyrecords.Com to see if there's an existing lease.
Eloisa Kilgore
maiden name was Williams