Hello. First time in here so please bare with me. This sec 9-5N-8E Cimarron Co has been in the family for over 50 years, or more. I have a individed mineral interest and receive a small check every year. My wife and I took a trip to this area last year and saw a couple pumps working. Now, yesterday I got a letter from Cheryl Delay, LLC asking me to sell my interest to them. (know little about them) Is this common practice? or do they know some thing I don't? Are they obligated to tell me whats going on with these wells? If I were to sell, how would I know what is a good price? I do believe that have a good relationship with West Star Drilling Co. I could be wrong although, though research I see were both names were in the same site. Both are located in Norman, OK. Wow, sure hope some one can help me go the right direction. Thanks so much.
If you really need the money, sell. If not, enjoy the income you have now and possible future income for you and your heirs.
I'll tell you what I always tell anyone who is thinking about selling ... hold on to those minerals.
But, if you're indigent and really need the $$, then sell and don't look back.
Regardless ... remember that the surface estate cannot block the mineral estate from realizing their ASSET. Mineral owners are in control!
In other words, I agree with Mr. Woods.
Good luck,
Pat
What do you want for net mineral acre? You can quickly move too quickly.
what I get each year is enough for a good drink at starbucks. I have no idea what it would be worth, and no idea what the well is even doing. It was my grandfathers and has worked it way down to me. Dont even know if I have been treated fairly or? For many years, never heard a thing from them, then all of a sudden, life returns from an atty in Tx. I would not even know where to start to find out more. Oh, and we are 74 now. Lol
Willard, sit back and enjoy the coffee. There is probably something going on in the area of your minerals or at least rumors of something happening.
Willard, age doesn't matter and a cup of Starbuck might just turn into two cups! lol You might want to start by getting on the Oklahoma Recorder Website and pull up your own Section, Township and Range just to see if there's any activity of any recent leases, etc., being recorded and then pull up all of the sections around you to check out what's going on there, too!
That should give you an idea if anything is happening, but keep in mind things are slow for now, but will come back as they always do!
Keep in mind, there's companies out there "fishing" to see if they can get ahold of your minerals for nothing, so I agree with the others, don't sell them unless you have to, but do make sure to include them in your estate, so that the minerals and royalties will pass on down to your heirs.
Good luck!
I get multiple offers every week on various mineral interests. I would never sell. Very difficult to reacquire similar assets.
As i tried to tell my children to no avail, the reason any venodor trades a product for your money is because your money is worth more to them than that product…
Many of these offers are preying on the ignorant. While the well might only be producing a few dollars, it is very possible that the lease is being held by production and could cover far more non producing acreage.
I think this low oil price could be a blessing. It makes many low producing wells uneconomical to operate thus allowing mediocre or plain bad leases to terminate.
I can almost guarantee that whatever you buy with net proceeds after paying capital gains taxes that will likely be used for existing government entitlements (i had to work to in somehow) will be a rapidly depreciating asset. I strongly suggest that you not sell the goose that might lay a golden egg.
Good luck and stay disciplined.
Good advice.
Good luck.
Pat
I can find not find any connection between the Cimarron county parcel description you provided and West Star Drilling Co. Try to find the lease in which you have a royalty interest using this
http://www.occpermit.com/WellBrowse/
and then determine the existing production. Then determine your fractional interest and imagine what your bonus could be if production dramatically increases. It seems very likely the person/company wanting to acquire your minerals knows something you do not. Mineral buyers don't just throw darts at a map and start sending out offers. It is possible the person/company is wanting to blindly buy existing producing royalties low and profit when/if oil climbs higher and/or if production increases due to new drilling/recompletions.
If you do not want to keep the minerals, you might want to check with the operator and see if they will offer you more than a stranger would. There are people who mine this data to acquire minerals from small interest owners. They usually send out letters by the dozens with low ball offers. They seem to increase when prices are low and publicity and forecasts are dismal in the media. Other interest owners in the wells might also be more interested in your assets than a stranger. IF you don't want to keep them, do a little research first before you just sign them away. Unless you really need the money, it's not a good idea to sell your minerals. They are not easy to acquire for those not in the business. As of a few years ago, the basis of legit offers was in the range of 60-72 months of income (for the interest, not per acre). So, unless they make you an offer worth a couple of gallons of Starbucks and throw in a few scones, it's not worth it.