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I just received a purchase offer for $7250.00 per acre for the mineral rights on s35-t11n-r8w and s2-t10n-r8w in Canadian county, my question is how is this figured what its worth. This is some inherited minerals from my fathers aunt I do know that it's leased to cimerax and they are in the middle of drilling two horizontal  wells. I am not going to sell but would like to know how to figure dollar amount. There is approximately 18acres of minerals in each section.  I think my dad has 1/38.

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Cindy, 

I makes a considerable difference in value if you own 1/38 of 36 acres or 1/38 of 1280 acres.  If it is the latter, the fair value to industry will be the amount of oil that can be removed at a profit(Geologic potential) from the unit of which your acreage is a part, times the lease royalty; then discounted for risk and time value of money (Economic potential).  Since you are leased, the unit development potential is limited to the Cimarex  business plan.  A very complex determination that shouldn't be done at home. 

More importantly is the value you would take for external reasons and never look back.  Industry may or may not pay that price.  Getting what you want usually requires time and education of legitimate buyers.  Actually getting the funds in your account usually requires some professional and legal assistance.  

Hypothetically, and assuming the drilling wells are competed as profitable wells, and having done this exercise a gasillion times, I'd say that the initial offer is "soft" for the development of the Woodford formation in Grady.  Since you can be patient in committing to a sale, the value could reasonably grow to 2X or even 5X the offer depending on how efficient Cimarex is operationally and fiscally.  There is little risk in finding the oil using today's technology.  Obtaining rue value in the market place is almost all dependent on the operator.  It is in charge.

Alloy have left to sell is your royalty right under the lease.  

Gary L Hutchinson

Minerals Management 

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