I have received several offers to buy minerals in 34-6-7 and 5-5-7 recently. Any ideas of what may be going on?
Kent:I have been getting slews of offers for 9-6-7. Apparently, Continental is pushing a bunch of wells in the general area. Offers have not been high enough to tempt me; I know that the offerers plan to make big bucks if I sell.
Jim B
I have had 2 recent offers–up to $12,500…and not high enough for me either–even tho nothing seems to be going on in 5-5-6 and the one Linton well seems to have pooped!
Those prices supposedly will be going down shortly, there’s some talk on the town. From what I am seeing and hearing, things are about to change as far as the high prices being offered. Guess we shall see!
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Kent, I own some in 5-5N-7W and have not received any offers, Can you tell me who and what they are offering?
un solicited offer to BUY on behalf of CLR $26,667 per net mineral acre with a 1/4 royalty in section 12-6N-6W, minerals owners should aware that the area in and around the “Project Springboard” can have 3-4 oil prone formations that will be developed. Check out the recent presentation from Gulfport highlighting the various formations and productivity of each.
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I don’t understand this comment. If you sell, lets say 1nma for 20K, what does the 1/4 have to do with the net payment? Isn’t that lease lingo? Seriously considering a sale in Grady Co… @$25k nma. I am a lone stranger with no heirs to consider. I hope to live about 20 more years. I cant imagine monthly payments could exceed this offer. Any thoughts from the community?
They are buying your minerals and your lease. If you have a lease at 1/4, then your lease is so much more valuable than a lease at 1/8th. If many wells are drilled over the course of the next couple of decades, that 1/4 lease is vastly more valuable in royalty income over the life of those wells than the 1/8th lease. (if they have identical terms). Most sales offers that I have seen are usually about the amount of one-two horizontal wells on the property. Many of these properties may have many more wells than that over the next few years, so in some cases, $25,000/ac doesn’t even come close to what those other wells are worth in the long run. (even considering the time value of money).
Would kind of depend on the time frame, and as always risk. How were those checks when oil hit $30?
Bet they were good when oil was around $100.00. When we bought some of our royalty many years ago oil was somewhere around $5.00 a barrel. Look at it now!!!
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Al, Not knowing how many acres you own or if they would give a company a controlling interest in that section it is hard to say how much it is worth. I also understand not wanting to wait the 5-10-20 years for the money to slowly come in. I would counter offer at maybe $35,000 an acre and see what kind of response I got. Depending on how valuable their position would be by owing the minerals you might get it.
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One more note. If your acreage is in the active scoop or springboard I would counter at closer to $50,000. You can always go lower, but once you give them a figure it would be hard to go higher.
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Darla.….What was the question to this answer of yours. I had this answer in my email but can’t find what question you were answering. What are you considering the “active area” of the SCOOP. Are you talking about $50,000 for all of someone’s minerals or per acre? Thanks
It was kind of a continuance of my comment to Al. It was per acre. I think you can actually google continental scoop to see the area. It includes parts of Grady, Stephens, Garvin and Carter Counties. There is a strip in the middle that is the sweet spot where I know that amount has been paid per acre for minierals.
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Darla, great advice on prices. I would sell a few acres except for the tax consequences.
Price per acre.
AL_Frans:
What section you own in and the royalty percentage on your lease will generally determine the purchase price per acre range. There are other variables, but everybody has different parameters when buying.
Todd M. Baker
Martha- Unless AL_Frans owns leasehold, they are not buying his lease. They are buying his minerals that are subject to a lease & the terms therein. The lease “stays” with the minerals as per the terms.
Also, minerals subject to a 1/4th royalty lease are worth exactly 2 times what minerals subject to a 1/8th royalty lease are worth, all else being equal. “Vastly” is hardly a mathematical calculation.
Todd M. Baker
Thank you. Point taken.
200% higher is close enough to “vastly” for me, Martha.
Keep up the great work!
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