My family has 8.3 mineral acres in section 36-5N-6W that we inhertited. We are very new to understanding mineral rights. We have received an offer to purchase at $4500.00 per mineral acres. Can any one help us understand what the value should be per acre in this section?
I leased 55 acres of minerals 16mi North and 7West of your section for $4500 3yr, and .20 override. I would hold on. That is one lease bonus payment. If this is not a geat field, you should be able to expect $2500/acre. Just my $0.02
Thank you very much. Sounds like we need to do some more research. We really appreciate your response.
Echo is currently drilling in 20 5N6W. They’re drilling three wells on a single pad on a 640 acre tract. I too would recommend holding on to your minerals.
Honestly when something is 2+ townships away its not really comparable.
16 miles north and 7 miles west might as well be in a different state. The geology and production profiles are drastically different.
You are sitting in a decent spot in 5N6W, the value of your acreage will dependent on a number of things, such as the terms of the lease burdening the acreage.
Rob, I leased my oil and gas in sec 19 5/6 with Titan, in Dec 2017 for $5,000 an acre, Think you diffinitely need to ask more questions.
I appreciate all the responses. I wish I knew what questions to ask. This is a topic I don’t know much about.
Section 36-5N-6W is part of what they call an irregular unit… the 320 acres from the east half of the section is combined with the 320 acres from the east half of section 25-5N-6W to make up a 640 acre unit. The 320 acres from the west half of the section is combined with the 320 acres from the west half of section 25-5N-6W to make up a 640 acre unit.
So, if your acres are in the east half you need to contact Continental Resources and get into pay status. They just completed their 4th Woodford formation well and if the last 3 are anything like the first one you will need a good tax person / financial advisor. Just seeing all the oil storage tanks they have set tells me they may very well be.
Likewise, if your acres are in the west half you need to contact Camino and get into pay status. They just completed their 1st well (Mississippian formation). Also, Marathon is currently drilling the 1st of 3 Woodford formation wells.
The downside is that there are old wells on both sides and chances are you are held by production @ 1/8 royalty. I hope not. Still an offer of $4,500/acre is a joke… Depending on the royalty, your lease terms and whether your minerals are in the east or west half of section 36-5N-6W your minerals are worth 6 to 20 times that offer.
http://imaging.occeweb.com/imaging/OGWellRecords.aspx Look up well records here…
Legal Location = 3605N06W or 0104N06W (Surface Hole Location for 3 of the 4 Peppered Ranch wells) or 2605N06W (SHL for Camino’s Abel well) or 2405N06W (SHL for Marathon’s Ellis wells)
PS - Be sure to contact the well operators for the old wells and get into pay status there as well.
Thank you so much. This is great information. My Grandmother also left my family two wells on this location so we need to figure that out too.
The description in the offer letter is Section 36 Township 5 North, Range 6 West. I. M. in W/2 NW/4 & SE/4 NW/4. Does that description help understand which company (if at all) to contact?
I really appreciate the help and sorry for all the questions.
Based on the legal description your minerals are in the west half of Section 36-5N-6W…
One of the old wells is the MAX RAMSEY 2 operated by Gulfport Midcon, LLC (OKC) …Another is the MUSICK 1-25 operated by Camino Natural Resources LLC (Denver) …also the MORRIS 1-25 operated by Camino Natural Resources LLC (Denver) …also the BARRINGTON 1 operated by Gulfport Midcon, LLC (OKC) … NOTE: I have not checked to see if all are still active or not.
New wells are the ABEL 25-36-1XH operated by Camino Natural Resources LLC (Denver) (there is no completion report on file yet)
Well Spud is the ELLIS 0506 3-25-36WXH operated by Marathon Oil Company (Houston)…… Permits to Drill - ELLIS 0506 2-25-36WXH and ELLIS 0506 1-25-36WXH (both also Marathon)
I would contact the Oklahoma Corporation Commission to see if they can help identify all the wells you may have a royalty interest in (in case I missed something).
Thanks again this is very helpful.
Don,
Greg Boyles here. I have mineral rights now at 36-3N-6W and am just now researching and geeting into the knowledge search to see what teh status is on tihs land. I have contacted continenetal, Osage, and Gulport with little reply.
I see this gentleman that has a section 35 lot, and also you speak to getting oneself in to a pay status. Its all new to me.
Ill look at the Woodford formation is that may apply to me, not sure. I coul duse some maps and btter understanding of the lingo used. There are some maps on here that have multiple colored dots and key ledgers, that are confusing as well. I have a call in to teh Grady Township office as I was told to submit my infomraiton to teh county offices as well.
There is no drilling in 36-3N-6W at this point. I just checked on my subscription site. It is on the back side of the Knox Bromide field. There has been quite a bit of leasing in that section over the last few years by Continental Resources, Osage Oil and Gas and Gulport MidCon LLC. Gulfport has a nice horizontal play going on in the backside of the Knox Bromide thrust which sets up the old field.
You may want to go to the Anadarko Basin Woodford topic and look up the Geologic maps that are posted there. Also, look up Gulfport and Continental’s investor presentations.
If you just inherited, make sure you name and address and a description of the property is on file in the Grady County courthouse so the land men can find you.
Your 36-3N-6W is 12 miles south of the 36-5N-6W where you just posted.
Thank you for the reply. We are being told my Mom needs to go through probate in Grady County. We live in Colorado. Do you have any guidance on who we could contact in Grady County to help my Mom get the mineral rights in her name? My Grandmother is still listed as the owner.
Any help is appreciated.
Thank you! We will contact John.
I suggest Kerry Caywood. He is with Park Nelson.
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I wanted to let you know we went with Kerry Caywood for the Probate. I am very pleased with Kerry, thank you for the referral!
Glad it worked out. Jim