Hi Everyone
My mother has been advised that she inherited a minerals interest in Section 30, Township 2S, Range 4W, Stephens Co. OK
Continental Resources, Inc. has approached her with an offer of $802 per mineral acre with a 3/16 [net of expenses] royalty.
Is this a fair price for this region?
Does anyone know if their has recently been a forced pooling order for this area?
Regards
George Chapman
George: There are no RECENT poolings in the offset. But Continental and Citation have both been active in the township east and north of you. Continental has been getting poolings with the only offer being $750 @ 3/16 which is way below the market. Citation has been offering $100 @1/5 and 1/4 no bonus. Over in 3S-3W I got $1,500 bonus @ 1/5 from Continental. There are a lot of leasing agents representing investor/hedge fund money that offer as much as $800 @ 1/4, if it is a hot area. 3S-2W may not be quite there yet. If you do not desperately need the cash bonus..I would strongly encourage you to go for 1/4 no bonus. They will come in first and do one well to hold the acreage...then at some point come back and do 5-10 more. The bonus only gets paid on the first well. So you could be leaving a LOT of money on the table for the sake of a little cash in hand now.
Bob Titley
