I just got a very low offer to purchase Canadian County Section 1-14N-5W. I have already been receiving small royalty checks from Superior Pipeline. Does anyone know what is happening in this section?
Offers to buy usually indicated something is up. Section 35 catty corner to you has pending cases for horiozntal drilling. Sec 36 has pending cases for horizontal drilling as do 2 & 11. So sit tight and see what is coming for your your section.
What is the purchase offer?
Really low at around $1,000 per acre.
That is ridiculously low. I am in 14-14N-5W and leased last year for 2200 and 20% for 3 yr. I would definitely hang on. The well in 15 -14N-5W that was just completed looks to be a big one from the tanks and the burning flame. They are running a 16 inch */- pipe to it from The North…
Let me rephrase the last statement.
I will coordinate my family’s efforts.
Scott: I would hold tight. That is not as much as a double leasing bonus. Youwill get more than that in 6 years if you lease again…
We leased in 12n-05w for $3k an acrea and 25%
T_Waller, can I ask who leased for that and when? I have some acreage in 13-6, that’s better than my offers. Maybe they would be intereste in mine also. Thanks Little Ricky
For Canadian County 1-14N-5W, would you take an offer of $4400/acre to sell, look for a lease or hold for a better offer?
What royalty do you have? 1/8th will have a lower offer price than 1/4th, etc. My opinion is that is too low. Most first offers are. Since pooling offers in nearby sections have been at $4000 1/8th, then if it were me, I would hang on for a lease. There is quite a bit of activity in the township.
We are part of a large production tract of 740. I believe the royalty is 3/16, but the actual payout is 0.000946 of the total production.
The payout is percentage or 0.000946%
So, I’ve since found out that the property is part of West Edmund Hunton Lime Unit (WEHLU). WEHLU is made-up of 30,000 acres. The Canadian county 1-14N-5W section resides almost completely in WEHLU. Our family mineral rights in the NE section definitely reside within WEHLU. It’s my understand that as long as there is any production in the WEHLU unit, then the lease will never expire. Our lease was originally for 1/8th royalty from 1942. The checks coming in are less than $50 per month. With this in mind, does the $4400 per acre sound like a good deal?
Personally, I have found that all my cold call offers have been very low to the payout potential of my acreage. There are pending horizontal wells in section 2 & 11 just to the west of you. Pending horizontal wells in 35 and 36 to the north of you.
As long as the WEHL is productive, you are receiving value from it.
Monica, I have minerals in 11N 5W. The offers have been all over the place but $1000 should be thrown in the trash!!! Val Carter