An Oklahoma City energy company called this week with an offer to purchase these mineral interests in Stephens County, Oklahoma. The offer is $5,500 an acre at 1/8 royalty. We are new heirs of a trust that was dissolved in 2019. We are doing our best to try to get some valuations on our properties but it is taking time. These three properties are just a very small part of our holdings which we have in Oklahoma, New Mexico and Texas. If anyone has thoughts about whether this is a fair offer, please let me know, I really appreciate it.
In my experience, first offers are generally low to what they will finally go for.
Does anyone have any recent data for these areas, particularly these sections in Stephens county? Again, we just inherited these properties and don’t have anything to compare this offer with in terms of similar recent sales. Any feedback is much appreciated.
I don’t have a clue about going rates here but isn’t section 19 one of the sections NFX (now Encana) drilled 8 wdfd wells in? Might want to make sure those are in pay!
2.5 acres flipped this month in Section 20-1N-4W for $12,800/acre… I didn’t follow the paper trail back to the original owner to see what they got. Nor did I see the royalty % tied to the acres.
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Don. Thank you for that information.
Hi Don, great info.
With regards to the flipped acreage price, is there a resource/webpage to find the acreage flipped prices? Is it accessible public info?
David R, the 1/8th royalty is not helping your offers. The higher the royalty you are leased at the higher the offer. Regardless $5500 is very lowball, a decent sales price would be two to three times that. This is a cut throat business, they will steal it from you if they can get away with it.
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Jim Jam. Great question. A resource/webpage to find the sales would be helpful.
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Michael. Thank you for the information. 2 to 3 times? Wow. I just want a decent fair market price and like you said, I don’t want them to steal it from us.
David, I am in 2n/4w the township just north of your 1n/4w. There are a lot of producing wells in this township and drilling continues. We have been offered over $25,000/net mineral acre. Many of the buyers are thinking long term and expect to make a nice profit sometime in the future.
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Can anyone tell me who’s making offers and buying in Stephens County. The offer I got was from Echo Energy. We also have properties in sections 3, 2, 36, 31 and 17 in Stephens County.
Echo sold much of their acreage to Continental. Echo may still want a piece. Those that are offering are expecting to make a profit off of any acreage they buy.
You can look up the deeds and sales on www.okcountyrecords.com
The Mineral Resources Co. is representing Continental Resources, last time I talked to them their offer had actually gone down. I’m thinking they might be reaching the end of their budget for the year.
Mineral companies pay Doc Stamps based on the amount of consideration they paid.
Their Stamp Fee is 75 Cents Per $500.
So IF the deed states the nma, you can calculate the price/nma paid.
[(Doc Stamp/.75) * 500 ] / Nma = price/nma
Without following the chain of title you likely do not know the royalty rate. If it’s an area with new lease activity you can assume 3/16. Also keep in mind that if the mineral deed contains multiple townships the company likely allocated greater value to one or more townships.
So this method is not 100%, but it’s a quick way to see what companies are paying.
You can view the mineral deeds on OKCountyRecords (depends on County)
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David: Because you have small interests, the offers will not be as high. The administration of interests less than 1.00 acre can be overwhelming. That said, you can get more than $5500/acre, even though most of the interests are subject to 1/8th royalty.
FYI, Township 1 North, Range 4 West, is nothing like 2N-4W due to extreme faulting. All sections are not alike. Some are worth more than others. And like Michael said, that offer isn’t available anymore.
There are buyers out there that will take the very small interests. If you can round up the parties you inherited with to sell as a group, you will surely get a higher price.
Todd M. Baker