I was offered $5800 for 1.6 acres of mineral rights in Custer County Oklahoma. I just received a letter saying a company wanted to combine 28 and 33 township for a well. It doesn’t have anything right now on it but the mineral rights are under lease for 2 more years with option to extend. I don’t know if I should just sell now or wait because I probably won’t get much each month when it starts producing and I don’t know how long it even takes to do that. Any advice would be great. Thanks
Welcome to the forum!
First offers to buy are usually low to see who will bite. If you would like to share the section, township and range, we can help with activity. Custer is having a resurgence with horizontal drilling for the Cherokee formation. The sections are usually spaced at 640 acres, so you may end up getting not only the first well, but subsequent infill horizontal wells. Even small acreage can add up.
Most offers to buy use a formula that includes revenue for three to five years discounted for the time value of money. Horizontal wells can be online for decades, so that is a factor to consider. The buyers plan to make a profit off of you. Do you want income for many years or a certain amount up front?
You may be subject to capital gains tax depending upon your federal tax percentage (they never tell you that.) If you have successful wells, then you have federal and state taxes offset somewhat by depletion credits.
Our family waits these sorts of offers out. We have made significantly more on royalties than we would have made on an offer. We have a long game in mind. If this shale reservoir works, then there may be others in the future.
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Angie, our family was offered just over $4,500 for 1 acre of our mineral rights, about a week ago. Ours is in Sec. 28, 12N-17W of Custer County. We think, based on what we have been reading on this forum to just wait and see. Are you doing that too? Rob
Yes. I have decided to wait and see. I’m in section 33. They are proposing a 1,280 unit on section 28 and 33 . My area is sec.33, T13N, R18W, . I think they other part would be sec.28.
(Sections 33, T13N, R18W, Custer County. I received a notice stating they are wanting to do. 1,280 acre super unit to combine 28 and 33.
That would be awesome. The last official word about anything concerning this was the letter (ORDER NO 756635) was before the Corp Commision of OK back in April this year. It stated that the Applicant (REIGN OPERATING LLC) who was seeking to “Establish a 1,280-ACRE HORIZONTAL DRILLING AND SPACING UNIT” in Sections 28 and 33, T12N, R17W, in Custer was dismissed (without prejudice). Appearing before the court was the Attorney for Reign (E. Huddleston) and the attorney for Crawley Petroleum and Posteros (Mr. Gary). Did anybody else get this? And if so, what are the ramifications?
28/33-12N-17W
Crawley has just filed new cases 2026-002050 Spacing and 2026-002051 Location Exception on May 14. Upper and Lower Cherokee. Stay tuned for the multi-unit horizontal case.
Is this also including Sections 28 & 33, T13N, R18W, Custer County? I know they had sent a letter about them getting an order for a 1240 acre super unit.
My letter states sections 28 & 33, T13N, R18W, Custer County
Ours is Section 33, T13N, R18W, Custer County
The Crawley cases just mentioned are in 12N, not 13N. That is six miles away. The unit would be 1280 which is two 640 units. Anthem is in 13N with their own cases.