We have mineral rights in several sections in Grady Co. and have someone offering to purchase all of them. (the acreage listed is my aunts portion) I don’t think my sister and I are interested in selling our part, but my aunt may be. (They were my grandmothers and she passed away last year.) I remember reading somewhere on here about considering the amount offered vs production over a period of time.
Could someone tell me if these offers are in line with current value?
2-8N-6W (9.9625 acres, leased at a 1/8th royalty), we would like to offer you $7,000 per acre ($69,737.50 total).
2-9N-6W (2.5 acres, leased at a 3/16th royalty), we would like to offer you $7,500 per acre ($18,750 total).
10-8N-5W (1.25 acres, leased at a 3/16th royalty), we would like to offer you $7,500 per acre ($9,375 total).
2-8N-5W (16.875 acres, leased at a 1/8th royalty), we would like to offer you $7,000 per acre ($118,125 total).
16-8N-7W (5 acres, leased at a 3/16th royalty), we would like to offer you $6,000 per acre ($30,000 total).
Thank you!
Do you mind sharing who your offer was from? I also own in 2-8N-6W and looking to sale.
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2-8N-6W (9.9625 acres, leased at a 1/8th royalty), we would like to offer you $7,000 per acre ($69,737.50 total). Camino has a brand new horizontal well permitted in Sec 11 & 2. Well was finished in March and should just about be in pay status. They are trying to buy your royalties out from under you before you get paid. . And royalties from any future wells. They left room for several more. First sales about March 16, 2019. Division Orders should go out in about late Sept or October. I wouldn’t give those up.
2-9N-6W (2.5 acres, leased at a 3/16th royalty), we would like to offer you $7,500 per acre ($18,750 total). Multiple wells permitted from section 11. Wells go into 2 & north into 35. You have at least three wells about to come into pay. I wouldn’t give those up. They hope you don’t know about the wells.
10-8N-5W (1.25 acres, leased at a 3/16th royalty), we would like to offer you $7,500 per acre ($9,375 total). One well permitted from sec 22 Dickens 1H-10X. Already online Room for more.
2-8N-5W (16.875 acres, leased at a 1/8th royalty), we would like to offer you $7,000 per acre ($118,125 total).You have one horizontal well in production. Room for more.
16-8N-7W (5 acres, leased at a 3/16th royalty), we would like to offer you $6,000 per acre ($30,000 total). Continental just pooled this section in March for Horizontal drilling. You have at least one well if not two pending.
Bottom line. If it were me, I would not sell for that price. You have too much upside. Most of my offers have been low to the expected value coming from my tracts nearby. I have had the engineering done on the wells and know what to expect. Just my opinion…
Thank you so much for your opinion. I enjoy reading posts on here, it’s fascinating to me. I’ve learned a lot and know there’s so much more to learn.
Our minerals belonged to my great grandfather and I truly believe they’re meant to be held on to and passed down to future generations. The sad thing is his other grandchildren and great grandchildren have sold most of their shares of it. I’m thinking my aunt will do the same. I know that my mom definitely didn’t ever intend on selling hers. I love knowing that my part will be passed to my daughter and grandkids.
Any advice for my aunt, should she decided to sell?
Her words copied and pasted from her email: I guess the volatility of the world oil supply is just really making me nervous right now, more and more.
I don’t know what the heck she’s talking about. But for whatever reason, I guess she thinks this could all end tomorrow.
Our family, like yours, has held these acres for a long time. My grandfather, my parents and myself have all been practicing geologists for almost 100 years now. We have seen these cycles come and go. We will eventually decline in our use of fossil fuels, but that will not be in the short term. Renewables cannot catch up that fast in an economic way. (yes, I use solar power and collect rainwater on a vast scale for reuse). Transportation still relies on hydrocarbons-even to make electricity for electric vehicles. The world politics usually do not move at lightening speed. She may be referring to the Saudi oil field attack. There are enough reserves in storage to balance out within a few weeks.
If she truly wants to sell, she had better ask for a whole lot more than what they are offering. She is walking away from quite a bit of royalty income in the next year or so. Most of the offers I have seen have been low to potential income from new wells, many of which are already drilled or drilling or permitted, not pie in the sky. That is why you are getting the offers. The buyers want those royalties and they are pretty sure they will make a profit off the sale.
Also, if she is nervous she could sell part and keep part. Split the risk. Or not sell at all, get the pending royalties and invest them in something she cares about. Hopefully, you had a good estate attorney that had the minerals evaluated at the probate. If she sells, she may have to pay capital gains tax. If she has an immediate medical need, that might be another issue.
I really value your knowledge and opinion. Thank you so much. I’m going to relay all of this to her. Selling part is an excellent idea if she is set on selling.
We also have mineral rights in Jefferson Co. Do you reply to posts in that county also? Should I post my question pertaining to it on that page?
Yes, I watch Jefferson county as well.
We have property in 8-8n-5w and were recently offered $8,350 an acre. It’s leased at 1/5. We declined the offer and don’t intend to sell anytime soon.
Do you know anything about 25-6N-5W I have 80 acres leased at 3/16th royalty and have been offered $15,000.00 per acre
Andrew, I can put you in contact with them.
You can reach them at 405.501.4080
most likely because there quite a few wells being drilled catty corner into section 35 with 2-5N-5W. They are buying ahead of the bit.
Ms. Barnes, Would you mind providing some more info. on the wells you reference above in Sec 11-9N-6W? I have acreage in that section but have not received anything from anyone concerning any wells. Thanks
You can look up the wells on the OCC well records site. Test
There are several wells that have a surface location in the far NW corner. They go north into 2 and have no perforations in 11. There is another set that have a surface location in the far SW corner. Some of them go south with no perfs in 11. The numbers imbedded in the well name tell you where they go (usually). There are several that start mid way in 11 and go north into 2. They may not have many perfs in 11. There are some old gas wells that are vertical that are still on line. Roan Resources is the operator. Suggest that you contact them.
ROAN RESOURCES LLC
14701 HERTZ QUAIL SPRINGS PKWY OKLAHOMA CITY, OK 73134-2641