Advice on Selling Mineral Right

My mother has received a letter from Vertical Energy. They are interested in purchasing her mineral rights. She has 3 sections in Beckham County and 2 sections in Washita County (totaling 66 acres). I have not been able to find much information about this company (Vertical Energy) and would like to know if they are a reputable company. I also have no knowledge of the process involved in selling mineral rights and want to make sure that she is not taken advantage of. Thank you in advance for any help / advice.

Any time I receive an offer to buy my minerals, I assume the offering company knows something that I might not know and they intend to make a profit off of me. So I try to find out what activity is going on in the area, what royalties I might be already getting or about to be getting from drilling and what might be happening the future. If you post the section, township and range, then folks from the forum can tell you if there is production or pending Oklahoma Corporation Commission cases for future drilling. In my experience, first offers are generally low to what they are authorized to offer and there is room for negotiation.

Thank you so much for your reply and advice.

The mineral rights in Washita County are in: Section 31, Township 10 North, Range 19 Section 30, Township 10 North, Range 19

The mineral rights in Beckham County are in: Section 1, Township 10 North, Range 22

Section 31, Township 10 North, Range 19 West & Section 30, Township 10 North, Range 19 West

This area has some very prolific gas wells in multiple reservoirs. It is possible that there may be more drilling in other reservoirs. Kaiser-Francis has applied for increased density in 6-9N-19W just catty corner to you, so that may have precipitated the offer. Are you currently getting paid on the still producing gas well in 31?

Section 1, Township 10 North, Range 22 West This area has some old gas wells. Not as much activity. But the possibility of horizontal wells in both areas is still out there.

The bigger players are Kaiser Francis, Unbridled (was Four Point), XTO. Whomever is offiering to buy has “heard something” that makes if financially worth their while. You have to decide if it is financially worth your while to sell some, sell none, or sell all.

Thank you so much for providing this information. It is very helpful. Yes, she is still getting paid for the well in 31, but the yearly amount is very small.

Unless she needs the money, it might be to the family advantage to hang on and see what happens. She can pass the minerals down through her will.

This topic was automatically closed after 90 days. New replies are no longer allowed.