Michelle Messccar wondering about leasing or selling in Hughes county OK. Section 23 Township 7 north range 8 east.
7 Billion Cubic Feet of Gas Estimated Ultimate recovery in one well 1 mile to the east of your section (Silver Creek the Operator). I would not sell for less than ~$4K an acre @ 3/16ths. I probably wouldn’t sell for that.
If given the choice on the lease, I would go for the lower bonus but higher Royalty Interest. A 1/4 RI and no bonus would be a good deal for you in here. I doubt they will offer a 1/4, but you can try.
If you have not leased before, then it would be a good idea to get a good oil and gas attorney to review the draft lease. The draft lease is hardly ever in the mineral owner’s favor, so will need some significant edits to get it more balanced. Most of us prefer a higher royalty lease as a productive well will usually far exceed the difference in bonus amounts.
Please explain how you derived 7B cubic feet. I got 3.12.
I am trying to find out how to obtain fair market value for a specific section/range/township? Where can I find comps?
There is no Zillow or similar MLS system for comps for mineral rights. If you are trying to get a fair market value for a probate there is one or two paths to take depending upon the date of death. If you are wanting a fair market value for capital gains, that is another path. If for a sale, yet another.
Some of our forum attorneys and mineral appraisers have given advice along those different paths.
I am just looking for a fair price on the sale of mineral rights that I have owned for many years. I did have them leased a few years back. I was approached by an buyer but not sure if it is a fair or not? No reason to believe otherwise just trying to see if there are comps
Only you can establish what you will take for them. So ask the potential buyer for more. If they decline you have now established what a specific buyer & a specific seller consider a fair price. All buyers & all sellers have different “fair” price metrics. Good luck.
As my attorney says, “A fair price is a willing and INFORMED seller under no compulsion to sell and a willing and informed buyer under no compulsion to buy agreeing on a price.” The buyers are usually much more informed than the sellers in this space.
Make inquiries as to upcoming activity in your area. You want to factor that into your asking price.
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