Is there any activity in or around this section, have had offers of $6,000 acre for 40 acres?
Continental has a horizontal Woodford play developing there. They and others are buying up acreage. Your offer will depend upon your royalty on the acres or whether it is unleased. Whether the offer is the highest that they will go remains to be seen. What royalty was the offer for?
It is leased, and we really don’t know a lot of how these things work.
If you are leased, then the lessee can flip your lease to someone else or drill it themselves or do nothing. The lease is a option, but not a requirement to drill within the lease timeframe. If drilling is planned, then the proposed operator will file cases with the Oklahoma Corporation Commission to get permission to do so. That may include drilling and spacing, horizontal drilling or vertical drilling permission, location permission, etc. These can take months to years to accomplish. When the cases are files, you should get mailings from the OCC if your name and address are properly filed in the county courthouse along with your title information.
Quite often there will be a flurry of buying activity by the operator or others who want a piece of the action in a well. Whether the prices offer are “fair” depends upon the perceived economics of a long term payout of the well or wells and what folks want to do with the money. Some sell because they have a pressing short term need such as medical bills. Others hang on for the royalties.
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