I have been contacted again about selling my minerals in Canadian County 31-14N-9W. They hit some pretty good wells about a year ago but the checks have dropped over 50% in the last few months. Now I had a company call and offer $24,000/Acre to sell them. Does anyone know if something else is going on out there.
Your wells are Woodford wells. You have the potential drilling of the Meramec formation going on in this whole area, added to the strong cashflow of your existing wells.
That would explain the strong offer. Thanks for the information.
Devon has about nine wells there. I didn't look them all up, but suspect they are in the Woodford. Given the increased activity in the Meramec above the Woodford, they may be planning future wells in the shallower zone. I sure wouldn't sell. The original wells may have 25-30 years of life in them with possible future re-fracs, etc. Lots of pay sitting in that section. That is why you are getting offers. The drop off is normal, but the long life at low rates is nice as well.
That is great news! Thank you M Barnes!
Did you accept offer?
Do you know of oil companies interested in leasing Canadian County…section 33?
Thank you for any assistance.
Your previous post was about section 31 in 14N-9W.
Are you now talking about Section 33 in 14N-9W?
If so, I don’t think it could possibly be leasable as there are already wells producing from the Woodford which would hold the lease.
Let me know for sure which you are talking about…
In either case, if you are already receiving checks for a section, you’re not going to be able to lease again for other higher formations unless there are extremely unusual circumstances. The section appears to be held by production, and any future drilling will be bound by the terms of your previous lease.
Thank you for your interest. l think my question crossed with another inquiry. l’m interested in leasing Canadian County…section 33…11N…8W. Any information would be appreciated.
Lynda, Did we ever get connected? Catching up on unread messages that slipped through the cracks.
Hello Ms Barnes…I Have Minerals Rights in section 7 14n 9w Canadian county…should I sell? What do you suggest? Thanks
If you are getting offers to buy in that section, it is probably because Devon just filed an increased density case at the OCC for five more wells. I received an offer just a couple of sections away from you and it was way below what I believe the total current (and future) value will be. You would have to decide for yourself if your family needed current cash or would rather wait for the pending wells. Just because you get an offer to buy doesn’t mean it is a good one. Lots of lowball trolling going on. Could be a good offer, but you need to get multiple offers and learn what your value really is. You could sell none, sell part, sell all. Lots of options. I have found that first offers are usually quite low and just out there to see if someone will bite. If you really get serious about selling, I would advise getting an engineering evaluation done to get a good base value on your current wells and then an estimate from them for what the future wells would be. They take into account time value of money, decline curves of current wells, predicted value of future wells, etc. It works much like the sale of a house. You wouldn’t sell your house without an appraisal.
Ms Barnes…Thanks so much for the information
24K per acre is the most I have heard in that exact area for what that is worth