I leased my mineral rights to Marathon Oil for $400 per acre + 3/16ths royalty a few years ago. That lease expired a few months ago and Marathon did not renew it. Now I'm starting to get offers from companies wanting to purchase the mineral rights. So far, I've got a purchase offer of $2500 per acre. Any thoughts on what a good price should be?
Need to know section/township/range before giving any kind of answer.
NE/4
Section 019-T16N-R13W
Marathon did a lot of leasing, as you know, in 2011 and 2012.
Looks like all of those leases may have just expired.
Since then, Continental leased only a couple in late 2014, and there is no more activity in your section recorded.
In your township, Cimarex and others have been doing some leasing. In fact, Cimarex filed in intent to drill in section 36, but that's about 6 miles to your east. They have a renewed interest in the Meramac in the general area, and certainly a bit of leasing going on in that regard. They have hit a half dozen or so good solid wells in the general area.
If you don't need the money, I would sit tight and be patient. If you do, $2500 is not a bad offer with the current state of affairs, although I would always try to counter for more.
P.S. I saw today a recent sale just a few miles north for $4000/acre.
Great info. Thanks for the feedback. Much appreciated.
I know this is misplaced but I'm new and have not figured out the system yet. Sorry. We have the same purchase $ offer on S30-T14N-R12W, 318.24 acres. We also have rights in sections 18 and 31. I am trying to figure out why there seems to be so much interest in this property as the offers have been escalating over the past few months. Since noting the above sale for $4K I'm beginning to wonder if a sale might be a smart thing. Please feel free to jump in here. I'm somewhat familiar with leases, having owned rights since the 60's, but selling is a new consideration for us. Thank you, Ginny
You were offered $2500 per acre as well?
Leasing and purchase offers are escalating because of a few Meramac wells that Cimarex has been reporting in northern Blaine County.
Originally discovered in northern Canadian and southwestern Kingfisher, the extent of the play is growing.
Thank you, Jerry. Yes, we were offered $2,500 per acre. The landman has not replied and I'm not sure how it works, nor do I have a good idea of what portion of that 318 acres I own. My sister has the same, so I assume each amount would be 1/2.
Jerry Foster said:
You were offered $2500 per acre as well?
This explains a lot. Thank you, JW. Now I can research the Cimarex holdings.
JW Anderson said:
Leasing and purchase offers are escalating because of a few Meramac wells that Cimarex has been reporting in northern Blaine County.
Originally discovered in northern Canadian and southwestern Kingfisher, the extent of the play is growing.
What offers have been made my Newfield in Blaine County? I know they drilled a very good well near the Blaine-Kingfisher border in Blaine County. If you have mineral offers, I think it would behoove you to get a look from Newfield. My attorney in Kingfisher, Ralph Harrison represented me in my lease negotiations in western Kingfisher County, and he should know the going rate with them. One half mile from me a lease was made for $4500 an acre. I think Turner oil and gas is the leasing agency.