Caddo County sec 04 12n 12w , what is a fair offer to buy mineral rights in this area. Starting to get calls and offers to buy but would prefer to lease. Has old vertical gas wells not producing much recently.Trying to educate myself as I recently inherited the mineral rights, any advise? Thank you Brent
If you just inherited, it is a good idea to slow down and understand what you have. Any time someone offers to buy, they know more than you do and they think they will make money off of you. When several folks call and offer, then something is probably about to happen.
In your section, there are horizontals the north of you in 31,32,33,35-13N-12W. There are horizontals in 13,19,20, 24, 23-12N-12W. New wells are planned in 6 (with 31), 7, 8 & 17 by Continental Resources. I expect that folks are trying to buy your acreage for future horizontal wells. In my experience, I have received quite a bit more revenue from my horizontal wells than from my vertical wells.
Look up Continental Resources Investor relations and find their recent investor presentations. You can see what they are advertising about where they are drilling.
If you have no real need to sell, then hang on for a while and see what happens.
Thank you M Barnes, I appreciate the information, another question how would I obtain a copy of the lease my grandfather signed almost 50 years ago on the old vertical wells? How long is a lease good for? Should or can I get out of an old lease, would this help my position for a new lease? Thanks again for your input. -Brent
Leases or a memorandum of lease are filed at the county courthouse. Digital files only go back to the early 90’s, so you may need to go there to get a copy. The other way is to call the operators and ask them for a copy. With so many company to company sales over the years, they may be sitting in a warehouse somewhere. A lease is good as long as there is production “in paying quantities”. Very hard to break an old lease if there is current production. You have to go to court and prove that the well is not economic. Actually, some of the old gross proceeds leases can be better than new leases that might try to sneak in post production charges.
M Barnes, I saw a post from a R Briscoe on March 24, you had a discussion with him regarding Caddo sec 4 12n 12 w. I believe I maybe the other 2/3 party involved as my royalties are from those wells. Do you have any contact information for Robert? I would like to get in touch with him. Thank you. -Brent
Send him a private message through the forum. Click on his name in the post and it should pop up.