I’m new to this forum. I just received an in solicited offer to buy my mineral rights in sections 28 and 29 of McClain county. The offer is for $3000/acre in section 28 and $3600/acre in 29. The buyer is Dry Creek Energy LLC. Does anyone have any information on the company or the fairness of the offer? Any advice would be appreciated.
Welcome to the forum: You should also post the township and range.
28-5N-4W and 29-5N-4W
What royalty went with the offer? It will make a difference on price. Dry Creek Energy is a fairly new company according to Bizapedia. Just over a year.
Which part of 28 are you in? Red Rocks has in increased density hearing for the W2 NW4 of 28-5N-4W to drill an additional well there . Sycamore well 2.499 BCF left unrecovered from the current wells.
Casillas had a horizontal well planned in 29, but it was dismissed. Since there are horizontal wells in 20, 31 and 33, someone is probably speculating on future activity.
18.75% in 28 and 12.5 in 29. I don’t know anything beyond the description 28-5N-4W and 29-5N-4W
Lots of speculators out there… Based on my own offers nearby, all have been lower than the value of the acreage based upon engineering appraisals and knowledge of future wells.
Joe- those offers are too cheap.
You should be getting the mailings on the case if you have acreage. You can follow the documentation on the OCC website. Use the case number.
Sorry, it posted in the wrong place. Ignore that last one.
Thanks! I’ll heed your advice.
So I turned down the offer from Dry Creek Energy. I just got an offer by mail from Ace Energy in OK City for $3750/acre (in both sections). No address other than a P.O. Box. Any thoughts or advice?
Joe:
I still believe that is too low. If they double that amount, then they are getting close to an acceptable offer. Just my opinion based on the time value of money.
Respectfully,
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You mind expanding on that? I’m familiar with the term. Just don’t understand what you mean in this context.
Sure. Selling producing minerals is actually the sale of future production. How many barrels will the unit have to produce before the buyer breaks even and how long will that take. If I can take that $$ and invest it elsewhere, I’m now in front of the 8ball & the buyer is behind it.