In the last 4 months, I have been approached by three different companies to either lease or sell outright, my mineral rights. I am trying to find out if there has been any recent changes or finds. I have owned these rights for 30 years and have never seen this kind of activity. Thanks
Need to know your legals; location is everything.
20 Net Ares
Section: 16-13N-14W
Custer County, OK
Frank:
There is no activity in your township of 13N-14W, but there is a flurry of activity just to the east into Blaine County, only about 3 miles from your property. It is primarily Continental, and they are hitting some big gas wells there. Gas is not the thing right now, but these wells are big enough to compensate some for the low prices. There is also similar activity to your north in Custer - also for the Woodford by Continental.
If it were mine, I would be patient and not sell. The bonus rates on leases are not especially high right now - $600 to $1000/acre or so. I would suggest signing a lease, but I don't know that I would be in a hurry to do so.
JW;
Thanks for your prompt and informative reply. What would you consider a fair offer?
I think the current going rate in those areas is likely $600 to $1000, based on what I've seen in Blaine County.
In the general region for the Woodford formation in adjoining counties, I've seen offers from $600 to $4500 per acre.
If they hit some big wells as they work your direction, the price could go up.
The offers could also disappear if they get disappointing results.
If you want to lease now, sounds like you've already got some offers. I'd probably counter their offer; ask them for 50% more than they are offering. Be sure to get at least 3/16 on your lease, and include things like a depth clause, no dedunctions clause, etc.
Frank, I love this area. Been in Oklahoma lease/minerals, etc for 40+ years. If you are seriously interested in selling the minerals outright, call me . I can make a deal with you or steer you to someone who will. John