Mineral & Royalty Conveyance Letter re: Section 23, Township 7N, Range 10E

Oklahoma Mineral Rights Hughes County, OK
1

Hello!

I received 2 letters from Southwest Petroleum in Dallas today wanting me to sign a Mineral & Royalty Conveyance paper for our mineral rights in Section 23, Township 7N, Range 10E. They are offering me $875 per acre (which is lower than the offer to lease my rights by an OKC firm recently of $1050 per acre).

If I read it correctly, this would actually sell my rights to them, which means I would not receive any royalties or lease them ever again. It appears the sharks smell blood (or gas, as it were)....am I correct?

Todd W. White

Sapulpa, Oklahoma

2

Yes, you look to be correct. I would also be very careful with the OKC firm offering $1050 an acre. With that price, they very well could be trying to purchase instead of lease as well.

3

You are correct, in my humble opinion.

4

@ Tyler ... I've had a company recently offer to lease - and it is my standard OGL - for $975/NMAin 6N-10E. I have heard of offers for lease in the $1250 range in Township 6N-Range 10E.

5

I looked at the $1050 offer carefully, and it was, indeed, just an offer to lease them.

It would appear that they think something pretty profitable is about to happen down there.

I sure hope it does!

6

Todd, what is the name of the company out of OKC offering $1,050 per acre? Was it Great Sky Partners? Their offers seem to be the highest in the area.

7

Yes. It was Great Sky Partners.

8

I also received an offer today from Lone Tree Partners wanting to purchase my mineral rights outright for $1,500 per acre.

9



Claudia Kemmerer said:

@ Tyler ... I've had a company recently offer to lease - and it is my standard OGL - for $975/NMAin 6N-10E. I have heard of offers for lease in the $1250 range in Township 6N-Range 10E.

10

Claudia: who and where on the $1250 in 6N?

11

Heresay, Stephanie. An independent operator in Hughes Co. told me about it. I was talking to him about the recent $975 offer, stating I thought it was top dollar, and his response was, "it isn't THAT top. I'm seeing some $1250 offers." Second hand info to me.

12

I ended up selling part of mine (small part) so that I could pay off some debts, including the funeral expenses of my son, and Lone Tree Partners (aka Great Sky) paid me $2,200 per acre.

13

Thanks for sharing the info, Todd White. Sorry for your loss.

14

Thanks.