This is my first time here so hope I’m in the right area. I own mineral rights to Sect.35,Township 4S, Range 1W in Carter co. Oklahoma. I received an offer for $1550.00 per net mineral acre. How do I determine if this is a fair price?
Thank you
Welcome to the forum.
Please post this over in Oklahoma in Carter County (see new topic button above). Your topic should be “Purchase offer in Carter County”. In the body of the letter , ask your question and include the section, township and range and whether the offer is to lease or to purchase. I will look for it and follow up there.
Welcome to the forum.
Is the offer to lease or to buy? If it is to buy, then I usually ask myself what do they know that I do not know. Then I consider the offer fits into my larger financial strategy. Is it small peanuts or significant and life changing? Is it a fair offer or just a lowball first offer? What is my timing? If drilling is coming, would I rather have royalties instead? What is the chance of a productive well or a failure? Or do I just wait and see what happens?
Most offers I have received have come before new drilling. Many of the buyers have a strategy of payout of their purchase in 3-5 years. Our family thinks more long term, so we are in the 50-75 year time frame and we do not sell as we want the royalties which we then invest.
Your section currently has several dry holes in various formations. Not necessarily a bad sign. Continental Resources has a large horizontal well play in Carter County. It has not quite reached this far, but someone may be buying for the future.
I cannot comment on the amount offered. If you have no particular reason to sell, you might just wait and see what happens over the next few years. If I were to sell, I would get multiple offers and take the best one.
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