Our family received a recent offer from Red Sky Land for mineral rights in S23-7N-3W – $750, 3/16.
Have a few questions. Is this reasonable for this area? Is there recent activity in this section we should know about (in August, Red Sky offered us $500, 3/16)? Any opinions on dealing with Red Sky?
I’m new to this and am quite distant from the goings-on - not only out-of-state but out-of-country. Any help would be greatly appreciated.
First offers are usually low. You should ask for 1/5 and 1/4 prices as well. The section to the north of you was offered $2750 3/16 $2500 1/5 $0 22% fairly recently, so you can see a difference. May be a slight difference in geology, or it may be a low first offer.
If this is your first lease, then slow down. Read the Mineral Help at the top. Read lots of the topics in McClain county to get a feel for what is going on. The terms of the lease are the most important and the first draft they send you will not be in your favor. It will need negotiation.