I have received an offer from Baseline minerals in Edmond of $10,000 per acre in sec 16/ 9n/4w. Any thoughts?
If the money makes a difference in your life, research what you own, negotiate for more & take it. If not, don’t worry about it. Baseline sends out a bunch of letters everyday hoping someone will bite.
No letters received, just phone conversations with one of their landmen. Curious if anyone else in this area has received offers.
Given that there are Increased Density cases on that section, that is why you got an offer. You may be happier with the returns from the additional wells. Lots of purchases companies send out offers before new drilling hoping that mineral owners don’t know about the new wells.
Thanks for your reply. Their initial offer was $6500 per ac and quickly rose to $10,000. I think I’ll just hold my ground.
Kind of surprised EOG is drilling more wells in this unit considering the Tomcat 16-21 IP’d at under 300 bbls/day and never went above 400 bbls/day…
Are you saying that you think it’s worth more than 10K/ac? Is it possible you leased at 25%, because I’m having a hard time seeing anyone justify that price point.
Where does this report come from…is it from a public or private resource? Recently, I started getting royalty’s from my mineral rights interest and trying to learn more about how “this” all works. Any help would be appreciated. Thank, Rick Buscemi
You should be receiving revenue statements with your royalty checks which will be much more detailed than the above. If you do not, I’d call/email the operator and ask if they have them available online.
This seems like a wild over pay given the production from the current well, no? With 3 additional wells, assuming production is similar to the first well, I’m not sure how you make $10,000 an acre in royalty payments.
Not saying you’re wrong but am I missing something? Thanks in advance!
My answer was to “why” there was an offer. I did not comment on whether $10,000/ac was the right amount. Tomcat #1 was in the Woodford. The Mississippian reservoir may have different economics. The case documents are not specific at this point.