We had some offers to buy in 2018 but have not heard anything lately. Does any one know of any activity in this area?
Only thing showing up in that section on Railroad Commission’s map is Anadarko’s Cornell 189-34 well drilled in 2016. It’s still producing but doesn’t look like an economic well that would encourage more activity.
That section looks naked compared to what’s around it. Lots of 3-5 year and older producing wells in adjoining sections but the map doesn’t indicate new permits being filed. Maybe Occidental’s purchase of Anadarko will get things moving again.
…depending on your offers it might’ve been wise to sell when the offers were hot. Now the mineral market is fading significantly, especially in areas like this were production has proven to be less than ideal. It’s funny that some say “NEVER SELL.” Every scenario is different, and market timing is a huge factor. Owners should consider the alternative investments (for example, the stock market) that can be made with the money from a mineral sale, while accounting for capital gains and future drilling outlook. Sell 1/2 and keep 1/2 is a good way to hedge your bets! Too many owners get comfortable with fat initial well flush checks, then see the sharp decline curve hit and wonder why their payments are significantly lower - then they think they should sell, but they’ve already reaped the flush and killed a significant amount of value for their mineral rights for a sale. In fact, I saw this exact case play out recently. One owner sold for a significant sum, and another owner held out. Well, that other owner finally decided the offer was the best they could get…but guess what? It was too late! The buyer moved on and was no longer interested in that deal. Just my 2 cents!
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