I have received an offer to purchase mineral rights in S18 1S 4W from Palmetto Energy, LLC 5530 N. Western Ave. Oklahoma City OK. Any advice is most appreciated. Thank you.
A friend of mine has dealt with them before and had nothing but good things to say. Sounded like they were thorough, professional, and the money was paid ahead of schedule.
The most important question is do you really want/need to sell? Is what they are offering the value of your minerals or are they offering you a lowball price right before there is a lot of drilling on your acres?
I am not sure what to do, they offered quite a bit. There are a number of considerations, I am in pay in that area, but the monthly revenue is less than what I could do by investing it. I am not sure if there is anything going on that could increase the revenues.
Thank you that helps.
If you post the section, township and range, some of us can look it up for you.
When I get a cold call offer, there is a reason and that company knows something I don’t know. So I attempt to find out.
That company also knows they will make a profit off of me and I would rather have the profit. I have been tracking my offers versus my actual value as computed by a reservoir engineer and comparing to my wells and future production. In most cases, the amount offered has been about the value of one-two wells in my sections. Subsequent drilling proved that I was right to hang onto my minerals.
You need to learn more about your area and what is going on. You need get offers from other companies if you really want to sell as one offer is not indicative of competitive value in my mind. You can say no, thank you and wait it out, you can sell some and keep some to hedge your risk or you can sell it all. If you do decide to sell, NEVER hand over a deed without getting paid.
Thank you, that is good advice. The section is in Stephens County S18 1S 4W the Leland 1-18H. Appreciate the help.
As I suspected, your offer is probably due to the increased density cases that are pending all around you-horizontal wells. Casillas has a cause in Section 5 for one additional well in the Sycamore. 89 Energy has a case in 22 to drill the first Woodford well and another immediately afterward. 89 Energy has a case in 23 to drill a Woodford well and another immediately afterward. 89 Energy has another case in section 25 to drill a Woodford well and another immediately afterward.
Your Leland well was drilled on the far east side of your section leaving room for plenty of infill wells in the years to come. The question is are you needing the money now or are you willing to sit tight and wait for future wells that may or may not be drilled. If you have a long view, you wait.
Wow, very good information. I can wait, I had asked some people I knew but they could not give me any insight. Thank you so much!