I’ve received an offer to buy mineral rights from a great grandfather…
1 Acre (out of the 640 acres in the block)
Sell the rights? Keep the rights?
$1300 offer
Some good oil/gas horizontal wells in that area…at that price it’s a steal.
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Thank you… I should be clear - That is the price that another party offered to purchase from me.
Two wells in the Gloria Griffen 47-38 A Unit (Well # 1H and 2H) bisect your minerals assuming you own 1 undivided acre in Section 47. The Unit is comprised of the western half of Sections 47 and 38. That means that you have approximately 1/2 acre in the Unit. I did the quick math and determined that your decimal interest in the wells (assuming a 1/5 lease) is .00015625. (A 1/4 lease would yield .00019531) From initial production in Feb 2022 through November 2022, 198,933 barrels have been sold. That means that, (assuming just $75 per barrel) that your minerals have earned $2,325 at 1/5, or $2,850 at 1/4. Of course you have to account for severance taxes at 4.6% and any other deductions (hope you have a no cost lease). Bottom line is: Clint is right! They would be stealing from you at $1300. And remember, that is only using 1/2 acre. If they drill in the East half of Section 47, you will earn even more.
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