I received a letter from Kraken Energy, LLC wanting to buy my mineral interests that are currently leased. What is the current price and what would be a reasonable offer to consider?
Offers will vary across McClain county due to changing geology. Most offers to buy in that area are due to pending drilling, so you need to know more about that activity before considering any offer. If you want to share the section, township and range, the forum can help with what is going on nearby.
Not sure why my post won’t get approval but I tried to reply with section 3, township 5N range 2W. Thank You
Capstone Land, Charter Oak and a few others leased heavily in section 34-6N-2W and 3/11-5N-2W. Blackjack has a rig running in 6N-2W for two- three section wells. Blackjack bought out LRR IV Operating just to the north and in several townships. Looks like Charter Oak filed OCC cases just to the east in 35/2/11.
If you have no real need to sell, looks like horizontals might be coming and you could sit back and see what happens.
Yes I am aware as I currently have Capstone drilling for some time there. I just renewed the lease with them. My question was concerning the sale of that lease (potentially). A company approached me to buy me out. Trying to figure out how to weigh that option and what I might be looking at to see if it would be worth selling.
Buyers usually have their own internal formula for what they offer. Something along the lines of three-five years production discounted for the time value of money, Many do not pay for the future upcoming wells since they intend to make a profit off of them. The mineral owner has to decide if they have a longer time frame and want those potential extra wells. Some risk on both sides of the story. You can sell all, sell part or sell none.