I received an offer from Native Exploration Operating to acquire my shares of these mineral rights. Can anyone tell me if there has been activity on this parcel, and if it’s worth selling or leasing it? The offer ranges from $2750 for a 3 year term with 3/16th royalty, to $550 with 11/50th royalty.
I am new to this, but these were my father’s mineral rights and he had them for 70 years, I believe.
I have never been much of a fan for selling mineral rights. That is a pretty healthy lease offer it seems. I have never head of somebody leasing for 11/50, but that is 22%! If a had a lot of acres, I would probably take the $2750 and 3/16, or counter $3000 and a 1/5. Bird in the hand. I think that is a pretty hot area.
As far as leasing goes, that looks like a solid opening offer to lease. Not low ball by any means. However, Native and other operators have paid more in the area. The only catch is you appear to be further out on the fringe of the play, so maybe they’re speculating? Someone that understands the geology better may be able to help you better, but I’ll give it a shot.
If the shale map on is true to the actual rock underground (which I highly doubt) then you missed the Scoop/Springer altogether. However, I’m willing to bet companies will start to test/push the boundaries - now that the majority of the core acreage has been leased.
As you can see here, the purple on the left is the boundary for the shale. There are offers on almost every section - those are the blue bubbles. As you move east, there appears to be less activity and the offers are lower in value. Up to $5750/acre | 1/8; down to $5250/ac | 20% inside the shale. Half or less depending on how far east. Side note: why is it so hard to get a 1/4 in OK? $0 bonus for a 1/4? Ridiculous.
Here’s a view outside the shale boundary and panning a little to the east. The offer values drop off dramatically.
The offer directly to your west is from 2017 and pretty close to the same amount Native offered
With all that said, I firmly believe you can get a better offer. There’s a good chance the offers from the images aren’t the best in the area, they just help demonstrate what’s going on.
Thanks. They have been worthless for decades but I’m inclined to hold onto them.
We leased in 28 to Native for 6000 for an 1/8. A few days ago we got the same offer in 21. I would hide and watch and you’ll get a better offer. From all the paperwork it seems there is a lot going on
