Recieved info about current opperator (Onitiv) getting permits to drill 3 more horizontal wells on existing lease where i’ve leased at 1/5% of 1.73 acres. He’s offering 10,500$ / per acre. I’ve tried listing rights to see what interest in but everyone who’s contacted me about it offers much much less. Can anyone advise on activity in the area and/or ball park value for my 1.73 acres?
Welcome to the forum.
Your offer is in the ball park since you are leased at 1/5th. I have heard of higher ones nearby. The question is do you really need to sell, want to sell or wait it out for the revenues from those wells? Most offers that I have received have been for the discounted cash flow of the current production, but rarely for the future production. The buyers fully intend to make a profit off of any purchase. Some do, some don’t. Most first offers seem to be low to see if anyone will bite. Would you sell your car if someone came to your door out of the blue and offered you money for it? Most of us would be wary of such an offer without doing due diligence which you are doing now. Many of the offers I have received have been ahead of the bit, so our family keeps their acreage.
Do some reading on the McClain County posts to get up to speed on what is going on in the area. Ovintiv may drill more than three wells in the future or drill only three or drill none. Only they know. (They have five permits in the section to the north of you.) I have acreage just a couple of sections away and six wells is the standard, so take that into the data collection.
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