Is there any activity in this area? I have 160 acres mineral rights and an offer has been made to buy my rights. I have leased this property for 12 years total. The current lease is up July 2018. From what I’m reading in the various forums, it may be best to hang onto it. Although the person making the offer to buy says this location isn’t very good. I hope y’all can help me find out if this is true or not. Any help is greatly appreciated.
Valerie,
Ask yourself this question ... would anyone who wants something you have, tell you that what they want isn't very good? Come on, now!
Follow your instincts and common sense.
Good luck,
Pat
Here is what I see in sec.9 10n 8w . one new lease in sec.5 for $1500 3/02/17 and in sec. 9 a lease for $2300 on 5/04/17.
Also a new well started April 25 in sec 2 by Cimarex. I don't think I would sell unless I was desperate for money.
Thank you Pat and Gary for your responses.
Pat, I was merely repeating what this man had stated to my brother. He also said a big oil company has the money and knowledge to buy up mineral rights on speculation and if it turns out bad, then they write it off. My first thought was same as yours…BS mister!
Gary, I appreciate your knowledge of the surrounding area. I live in Texas and haven’t had the chance to drive back to Oklahoma to do any hands on research. I joined this forum in hopes of learning all I can so I can make the best decision. So far this site has been very helpful!
Here is some good information that you and your brother may want to "digest" before July, 2018. Reading them, may, "enhance" your next negotiation experience. The authors are well known in the industry.
Good luck,
Pat
365-JBMshortchecklist.pdf (20.1 KB) 366-MineralsSurfaceRights.pdf (854 KB)Thank you Pat for the attachments. I’ve got a lot to learn in a short amount of time and this will be very helpful. Appreciate it very much!
Valerie,
I suggest you wait and revisit your options after July 2018. At that tine, you may be inline for a long term royalty stream, be able to lease again with a lease that benefits your long term plans, or reconsider the advantages to you lifestyle by finding a buyer that want to trade cash then for a long term involvement in your acreage. All of these options are most likely better than the offer to sell now.
One situation you should avoid between now and July 2018 is the granting of a top lease or anything that reserves your mineral rights for a date past July 2018. Demand for acreage in your area will only get stronger in the next year. Use that to your advantage.
Thank you for your response to my question. Added it to my notes.