I am glad that I have found your group and see people who are in the same situation as myself, looking for advise and answers.
Our family received an offer for purchase of mineral rights in Black Jack Sect 16, Block 7 (1/32 share) to sell rights for $55k. We are all new to this since this purchase was made years ago by a family-member who has now passed away.
I am researching this offer and am interested to understand the possibilities and yield of lease vs sale. Also, I would like to find out what a reasonable offer for the rights to sell would be. (when would decide to sell instead)
I would like to know where to start, find out what is happening there now, who is the exploration company and so on. What else do we need to research and consider before we make a decision? Thank you very much for your input.
I was informed by the company that offered the 55K, that their intent is to combine the mineral rights that we all have in order to sell a larger portion of rights to a large company. Any data or confirmation of this intent?
Thanks to all out there. Hope to hear back soon.
(revised)
What is the price per acre?
That's the important consideration.
There is a wonderful lady on the Stephens County, Oklahoma forum that has a fantastic spreadsheet to help with your questions. I’ve misplaced my copy, but I bet if you post your question on the Stephens county forum, she would re post it or send it to you. Her name is M Barnes. You could do a friend request and ask. It’s really eye opening. And she is one of the most knowledgable folks on any of the forums. It takes a look at the long term,leasing bonuses,number of wells etc. its a great spread sheet that you can plug your net mineral acres, leasing terms, bonus amount and then calculates if you would lose by selling or make more in the long term if a well or wells are drilled. Much depends on your situation, but her spreadsheet is very helpful.
few things to determine an evaluation:
Is it leased? What is the royalty if leased? Who is the lessee and what are their plans for production? I will take a look at the acreage in the morning and try to get back to you Karen. Welcome to the forum.
Karen -- FYI, about 1-1/2 miles S of your section in PSL BLK 72 SECs 8 & 17, Cimarex Energy Co. is currently drilling their STRAWBERRY STATE 72-17 #1H horizontal well with a ~7,500’ lateral. The well [API 389-34406, A-4998, 2.4 miles NE of Toyah] was spud 1-10-15 (i.e., commenced being drilled).
This well will cost in excess of $10m... so walk softly stranger. Later – Buzz
They are offering $2,750 per acre. We do not know what the current situation is. I have a map that shows 3 wells: 1H- 34066, 34067 and 34068. no idea about their status. How can i find out?
Karen -- those wells are in PSL BLK C7... not C17... please explain. Later -- Buzz
yes, you are right. I have a copy of the deed and it says just that: Section 16 Block C-7. The offer we got to sell mentioned Sect 16, Block 17 so they who made the offer did not do their homework. I am glad you caught it, I did not see it until you mentioned it.
Do you know what the status is of those wells in C7 ?
