My sister and I inherited 60 acres of mineral rights in Caddo County in the NW/4 of Section 16-10N-10W. which are currently under lease until next March. We leased them to Blue Ribbon Energy–took us the help of an attorney, and a full year to get paid for our lease, which was $600/acre. My sister was recently approcached by a company to BUY the mineral rights we have for $300,000. Is there drilling going on where we own, potential income from having them leased, or should we take the money for the sale and run? We live in KS, so we’re not close to the area. We’re not able to check on production or anything. And we’ve never heard a single word about the current lease–whether any drilling was going on or not. We could use any advice we could possibly get. When our mom was alive and owned the rights, she leased them in 2011 for $1200/acre…
Welcome to the forum:
- Assume the purchaser has much better information than yourself.
Scout energy recently transferred wells to Mid-con Energy in your area. Others may be chiming in on spacing unit or pooling applications.
We have mineral acres in 30-10-11 and we leased to Bistro/ Blue Ribbon in 2017. Last wee, we received notice of a request for relief concerning spacing originated by Lynx Operating Co, which makes me think there is a serious chance for drilling. Looking into Lynx, it is managed by the same people who run Bistro and Blue Ribbon. I hope vertical integration is a good thing in this case!
We found out the same day I wrote this that there WILL be drilling in our section, for natural gas. For those who have both received royalties from leased rights, OR sold their mineral rights–which is the best thing to do financially? We have no idea what to expect…
The companies that are offering to buy know more than we do about upcoming activity and they are pretty sure they are going to make a profit off of us. All the offers that I have received so far on minerals in many counties have been below the value of the minerals’ current production and future potential, so I ignore the offers and keep my minerals. Unless you have a real need to sell or have a different investment strategy, then consider hanging on. There are quite a few companies out there offering lowball amounts just to see if people will bite. If you do need to sell, then get at least three competitive bids from legitimate companies and never turn over a deed without getting a cashier’s check.
Agreed, I’ve been receiving liquid gas monies for several years now, although it’s fluctuated in price it still a monthly income.
I appreciate everyone’s input. We just don’t know whether to expect to receive a monthly income of $20, $200, or $2000! I have a small interest in an oil well here in KS, and what I receive from this old, 60 year old well is about $100 every 3 mos. I can’t believe it’s still producing anything at all, but I guess these things are sometimes worth hanging on to.
Section 16-10N-10W- You can find the well documents at the OCC wellrecords site. Use the surface location. Test No permit yet, so you won’t find it yet. Watch for it in section 2110N10W (put that string in the location box)
The OCC cases can be found at: OAP See the case numbers listed below.
You may be able to find the well on the Gross Production tax site after the well is completed The active date is usually fairly close to the first sales date. https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
Citizen Energy is planning a horizontal well with 16 & 21. You should be getting the OCC mailings. They just filed three cases with the Ok Corporation Commission on July 12. If you are not, here is the contact info for the attorney for the cases. They are filing for a 1280 spacing in the Cherokee unit. Case 201903730. Location Exception is case 201903731 CITIZEN ENERGY III, L.L.C. 320 S. BOSTON, SUITE 900 TULSA, OK 74103 Contact Name: WILLIAM H. HUFFMAN Contact Phone: 918-492-4433
30-10N-11W-The normal order of cases is for the spacing to happen first, then well permission, then location exception permission, then pooling of any remaining acreage. Once you see a permit on the OCC well record site listed above, that is encouraging, but not a guarantee.
Thank you for your information. We did receive a “booklet” of information the first of the week, which was the first we knew of the possibility of them drilling in our area. We’re keeping our fingers crossed!
Depends. I have sold and regretted it. I have sold and been very happy once the well was drilled. Not really a perfect science to it.