Received an offer to buy at $2000 an acre. Each family member owns 90 undivided acres. Looking to see what others are receiving either purchase or leases.
I would suspect that each family member owns a part of an undivided interest in 90 acres. Would be extremely rare for folks to own a full 90 with this many generations passing since patent.
89Energy and Continental have a horizontal play developing there. Folks are trying to buy up acreage. You may want to consider leasing instead. Offers to buy are frequently low especially if the buyer is the operator or has inside information about planned drilling. They fully intend to make a profit.
No you are wrong. There are four family members, each own 90 acres. It was least by Continental several years ago. Now not least. I have tried to solicit leases, but no takers so far. Will continue to do so. Thanks!
typo - not leased. Will keep on searching for a company.
Companies leasing in 06S-02W -Continental Resources
89 Energy II LLC
Comanche Oil & Gas
Companies buying minerals in 06S-02W -
Your lease may say 90 acres, but that is the size of the gross tract and how it is normally stated in the lease. Your actual net acres may be less. If you are fortunate, then each of you may have 90 net acres, but would be unusual.
Thank you. Any names of landmen involved?
It may be unusual but it is exactly 90 net acres per family member. when last leased each received almost $60k per. I have spoken to a few landmen, but at that time they were not looking to lease in the area. I saw the list that another forum member posted and will start working this again. I too think it is better to lease then to sell. Especially for such a large tract of ownership.
You are lucky to each have that many acres! Getting a good lease will be very important. Given that you each have so many acres, you may want to hire a good oil and gas attorney to make sure that you have an up to date lease with the most protections to you as a mineral owner. Any generic lease plopped in front of you will be almost all in the operator’s favor. Almost everything is negotiable.
Also, if all of you stick together and get the same lease, you may be able to get a better price.
Agree. Do you have any information on what is going on in that specific area 21-06s-02w?
Multiple companies are filing cases for horizontal wells all around you. 89Energy, XTO, Continental Resources are the most active. Leasing companies are Continental Resources, Mayflower Petroleum, 89 Energy, LE Jones and a few others. Make sure you do not have ANY post production charges. Continental is going to try to get them from you. The others will probably also try, but you do not want to pay them. Also, there are 1/4 leases out there. Warwick Jupiter is offering them.
Warwick is leasing down here?
I think the other companies you mentioned are all horizontal drillers, which judging by some public structure maps, 21-6S-2W is on the wrong side of the basin-bounding faults. So,if someone is offering $ for these minerals, it must be for a vertical strategy.
What exactly does that mean? Are there any maps of the basin bounding faults? I am a relative of the owners and want to stay informed. Thank you.
Just received an offer from Black Marble Energy in Section 18 for $100 per nma and 3/16 royalties which on first glance seems preposterously low. Any idea what current lease rates are running in this area?
$100 per nma is way low. Older lease was $600 per. 3/16 royalty was the same. Even though the lease was a few years ago, I think demand is up.
Through it in the trash!
Minimum of $800 and 20% plus other beneficial terms
Thanks Darrel and Heidi that is very helpful.
Mrs. Barnes , I see many post from you. I have no idea about any way to go about making my mineral rights an asset. I don’t have any knowledge about rights, leasing, royalties, . I have received many offers . I do know that as of now XTO has my lease. I also wonder about who was receiving royalties before my father died. I need a mentor . I want to make sure I do this right, I have 3 children, one of which is autistic with other mental health issues ,and I want to make sure I do the right thing for them. My rights are in Love co. .
There are many ways to get more informed. The Mineral Help tab at the top and the BLOGS category will be a good place to start. Reading all the Love County topics will be a good way to see the concerns of other folks in the area. The National Association of Royalty Owners NARO has a Category on the forum. Just a few to start with.
Do you have a new lease with XTO or an old one?