Should I sell?

Oklahoma Mineral Rights Kingfisher County, OK
1

My mineral interest is in 3-17N-6W. I get a modest royalty from it.

I have never really paid any attention to my holding, I just cash the checks.

No one has ever expressed interest in purchasing the rights, until now. I just received a letter from a Landman on Oklahoma Energy Aquisitions letterhead offering me $1000 an acre.

I have no idea how many acres are involved, whether this is a fair price, or if selling makes sense at all. How do I figure all this out?

Any input from the group would be greatly appreciated.

2

I could not find a producing well in section 3 . But I did find the reason they want to buy you out . There is a new well south of you in section 10 . I will see if I can find some more information

3

Ron,

Thanks for your input.

There are two wells on my holding, named Miller 1 and Miller 2. I get monthly royalties on these.

4

Ron,

I stand corrected. I just did some more digging and see that the wells on my holding are capped. I am being paid because it is part of the Lincoln North Unit.

Any more information you could offer would be greatly appreciated.

5

That's better . Do not sale . I'll get you some more info later today .

6

http://imaging.occeweb.com/OG/Well%20Records/1DD12152.pdf

http://imaging.occeweb.com/AP/CaseFiles/OCC_OG_22ULKK9_33H1QMO.pdf

http://imaging.occeweb.com/AP/Orders/OCC_OG_2C3FHO0_1LA9V6T.pdf

http://imaging.occeweb.com/AP/CaseFiles/OCC_OG_0KE3PCJ_0P3UO82.pdf

http://imaging.occeweb.com/AP/CaseFiles/OCC_OG_1AJ78B1_09A4N2S.pdf

http://imaging.occeweb.com/AP/CaseFiles/OCC_OG_226TKK9_36HGOMS.pdf

http://imaging.occeweb.com/AP/CaseFiles/OCC_OG_23MLKK1_32L1OMS.pdf

7

Ron,

Thanks for finding all these documents. I'm wadding through and truing to understand the import.

8

Ron and Alan,

I also just received a letter for Mineral Purchase Offer from Landman from Oklahoma Energy Acquisitions, same price, $1000 per acre. I'm Section 33-19N-6W. The pdf files that Ron provided mentions Section 33 as well.

Would the new well in Section 10 apply to me as well, as far as advice for not selling? Does all this have anything to do with the Hladik No 15 well that is suppose to be a new "monster" oil well?

Any information is appreciated.

9

Belinda,

You say your holding is in 19N-6W. This is not part of the Lincoln North Unit. Perhaps you mistyped?

In general, if your holding is part of a unit, you have a percentage share of any production within the unit.

Thanks for the heads up on Hladik No 15. While not in Lincoln North, any new strong production in the area would seem likely to effect the value of nearby holdings.

10

Alan,

Thanks for your reply. Yes, Section 33-19N-6W is correct. I will call the Landman tomorrow and find out what unit I'm a part of, etc.

Like you, I just receive a small monthly check.

Thanks again.

11

FYI, your holding is worth considerably more than $1000 an acre at the moment.

12

Ms. Powell,

My company can beat $1000 per acre by a substantial margin. If you are interested, we can exchange contact information via private message.

Thank you,

Charlie M.

13

Thanks, you are correct, I'm not in Lincoln North Unit. My paperwork says I'm in the East Hennessey Tract Unit.

Alan Goodwin said:

FYI, your holding is worth considerably more than $1000 an acre at the moment.

14

Evidently, you need to look closely at the memo on your checks. Also, I would suggest a trip to the County Clerk office and review the Oil and Gas leases. Here you should see the acres involved and you might find other oil company with wells need by. Again, contact them and see what they may offer.

If your own 20 acres times $1,000.00 equals $20,000.00. If you divide the amount of the checks for a year into $20,000.00. How many years are required to equal $20,000.00. I trust this may be of some benefit to you. ###