Look for per acre value 23-8N-6W 0.1625 Royalty. Have 4.44444445 acres
Welcome to the forum!
“Value is defined as a willing and informed seller under no compulsion to sell and a willing and informed buyer under no compulsion to buy agreeing upon an amount.”
You can get a professional engineer to give you an appraisal for the production of any current wells and the potential for future wells. We can only tell you the activity in the area. Most offers I have received have only been for current wells as they want to make a profit from additional wells.
If you just received an offer to purchase, it is probably because Camino Natural Resources has an Increased Density case just approved for that section. Camino has the Clara Luper well which had been planned for the Woodford horizon. It had drilling problems and is now in the Mississippian just above the Woodford. An additional well is requested. In addition, the original Woodford is still available for production. So you have the potential for three or more wells.
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Should have said fair market value. I’m the administrator of my mother’s estate and need to value this for probate.
Check with the attorney who is assisting you. Generally this does not need to be exact unless there in an estate tax issue. Or, if an heir intends to sell the minerals, then this is helpful for capital gains issues.
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Property will probably have to be sold. Have an offer just need to make sure it is fair.
My 2-cents
I have never received an offer that was a fair price. I have ALWAYS had to bargain for a higher price. I don’t know if you are talking to a flipper or a landman for the driller and they will not tell you which they are… If a flipper you will be wise to wait … time is on your side. Just remember it’s the wild West in this business - almost no one except folks in this forum are on your side… The small oil driller seem to be the worst – of course who can blame them they want to make the most money with the smallest cost so they keep us in the dark usually as what they pay and what they are thinking.
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Have been offered $6000.00 per acre. I know nothing about Oklahoma land or mineral rights.
The offer is based upon the royalty percentage of any producing wells. Since the new ones are not online yet, the offer is probably low. Good for probate value as of the date of death (or six months after-whichever is lower). The heirs might want to wait and see how the new wells come in before considering a sale. Do you have any records which say what the royalty rate is? A lease?
The offer shows a Royalty 0.1625, not sure if that helps. Seams like my grandmother was getting somewhere around $1500. a year avg.
On double the amount of land.
Get the probate attorney to help you with the value. The estate can pay for the evaluation.
The easiest way to find out it’s value is to wait 2 to 5 years to determine the payouts on the new wells. You may start receiving enough royalty that you find out it was wise to keep it.
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