I have minerals in 8-16n-10w. Well name is Ladd 1-8-5xh. API is 35011235210000. I am getting calls daily from echo energy wanting to buy. They are going up a 1000 dollars a day. Does anyone know what is going on in that area
Larry, that area of Blaine is quite active right now with potential for many wells per section in the future. I would encourage you to read over the last six months of activity on the Blaine forum. Also read the Q4 2015 and the Q1 2016 investor presentations for Cimarex, Continental Resources, Newfield and Marathon Oil to name a few. This is part of a stacked play with the Mississippian Meramec and the Devonian Woodford shales, plus a few more reservoirs. Many offers to buy out there by companies that want into the play. Be very cautious about selling right now. In my opinion, they are not offering what the minerals are worth since this is a 35 year play with many reservoirs possible. If you have no heirs and want to enjoy the fun, then maybe, but if you have heirs, hang on. You can friend me if you want more information. I do not buy or sell.
Dear Mr. Ladd, Continental Resources has been trying to pool sections 5 and 8 in T16N R10W to drill a horizontal well. Echo Energy tends to take leases allowing them to participate when someone else drills a well. Echo also purchases minerals. The Ladd 1-8-5XH was completed on Oct 15, 2015, flowing 155 bopd, 272 mcf/d and 162 bwpd in the Mississippian.
Good advice from Miss Martha. You minerals are in a excellent location with a long-term value that is difficult to estimate. You can read about the oil companies activities in the STACK to see what they think of it. I would not sell any minerals in your township.
Just confirmed an offer over $9000 per acre in Blaine County. The whole county is seeing enhanced activity
I have got echo up to 13500 AC I have 40 with 3/16 in
Larry,
I would take that deal and never look back! Great per acre price you got them up to, sign the dotted line!
If you have a strong itch for cash, sell them a few acres and hedge your bet. I would keep them, if at all possible though.
Do you think they would drill a few more holes in the next few years if I held on to it
Go read the latest quarterly reports for Newfield, Continental Resources, Cimarex, Devon and Marathon. Hang on in my opinion.
Consider capital gain for tax purposes. I would not sell.
Thank you for the info
Personally, if someone offers me $13,500 per acre for my minerals, sold...
I've run enough decline curves regionally, that the "average" property is unlikely to produce that much over the next 20 years. Having said that I also would re-invest and if possible use1030 tax exchange to seek minerals is areas that are "not as hot". If I can exchange 80 acres for 800 at $1,350 an acre... I'd do that in another geologically favorable area.
Your tax exchange is an interesting idea. Might have to check into that!
On your decline curves, were those just for one well or for all the potential wells for a particular section? A one well "average" answer will give you one value per acre, but the additional potential wells will give a much higher value per acre. There are areas nearby where I have nine wells per section and $20,000/ac doesn't even come close to the real value of the minerals even in the short term of a few years, much less the 25-30 year life of the project. You have to know the geology, the completion techniques, the price of oil and gas are critical, etc. Lots of factors to consider including the risk of the additional wells being drilled and the time value of money. Not a simple answer at all. But generally speaking, early offers are quite low and are just trying to catch people who will take them with no questions asked.
Would the fact that Continental Resources just filed for an additional EIGHT more wells in section 7 just to the west of you cause you to hang onto your minerals? Also, $13,500/ac is not the highest being offered. Just saying....
Larry,
$13,500 is a great offer for the area, I would sell. It will take you decades of development to maybe, just maybe reach that amount thru royalty checks. That is not a guarantee either just a maybe. You will pay tax at the capital gains rate= 15% unless you purchase more "real property" within 180 days and you can do a 1031 Exchange which allows you not to pay tax on the sale of your minerals as long as you put it into another piece of real property within a certain amount of time. Lots of rules there, so do you research if you want to go that route.
I say take the money, if you are smart about it you can take the lump sum, invest it, and make a ton more money then you will by sitting back and hoping for royalty checks to add up to that amount over the next few decades. $13,500 is a great offer!
Good luck whatever you decide to do!
Are you a landman, Cameron ?
Lanny,
I have been in the past, I now live and work in the oil industry in Austin, TX in a different role. I am still a OK mineral owner though.
-Cameron
Company to company transactions in the STACK are running from $15,000 - $20,000 per acre. $13,500 is low. Marathon announced buying prime acreage from Payrock today.
Correct M. Barnes,
However Mr. Ladd is not a company he is an individual. Also, the acreage Marathon bought from Payrock included 9,000bbl of production per day baked into the price.
Echo is far and away the company paying the highest per acre prices in the STACK and 16-10/16-11 are the hottest townships in the entire play. $13,500 is one of the highest prices I have seen.