Blaine County, OK - Oil & Gas Discussion archives

I agree with MSanders. I have been in the oil & gas industry for 35 years - both as an operator and a ranch and mineral owner. I thought Stewart’s answer was perfectly reasonable. I turned down an offer last year on minerals in Texas at $9,000/acre because I knew that Pad development might occur and, full-scale development would be more valuable. Today, there are no mineral buyers in that area. I expect prices to return but, anything can happen - price declines and poor wells. So, while I prefer to hold my minerals (partly because I understand the full value chain and don’t need to sell), I have seen energy assets lose substantial value as often as substantial value was created. I would advise you to hold the minerals and not sell, but I neither know your personal situation nor the outcome of prospective development. If a good well is drilled, certainly in-fill development will generate much more value. But, time and oil/gas prices are a big consideration in that value determination. No telling, once minerals are held by production, when such in-fill development will occur. If, on the other hand, a well is poor, value will be greatly diminished. In any event, whether I agree or not with the substance of Stewart’s response, I think the vitriol on the Board was unwarranted. People, it’s Christmas for goodness sake.