Through a will, I was given Section 29-Township 16 North – Range 8 East (SE/4 SE/4) AND Section 32-Township 16 North – Range 8 East (NE/4 NE/4).
I live in Florida and I have no idea what these property rights are worth. Some have contacted me wanting to purchase them, but I don't know what a good deal looks like, and what being taken for a fool looks like either.
What's the going rate per acre that should be a fair price? In real estate you can check prices through various websites to compare what your house is worth. Is there any such website that does the same as with mineral rights?
If someone wants to buy your minerals, they want to pass less than what they are worth just to see if you will bite. A rule of thumb is 4 times the annual returns on oil and seven times the annual returns on gas. But you need a well first. Non producing acreage has other criteria depending upon closest production, geology, etc.
You just got pooled in your section, so hopefully you responded in a timely manner and got the choice you wanted. You will probably get a well there soon.
Creek County is starting to see some horizontal drilling, so if it is coming to your area, then you will get higher and higher offers. The whole strategy changes with horizontal holes about the value. They usually drill one well to hold the section, then come back in a couple of years and drill quite a few more. In the meantime, lots of offers to buy go out hoping to catch low hanging fruit from folks who are not informed. You should probably wait and get more informed or you will not get top dollar. The first year of a horizontal is the best year, then it drops quite rapidly, BUT the wells are predicted to last 25-30 years, so most of us do not sell our minerals since a steady paycheck for 30 years is kind of nice.
That being said, I would recommend that you read the last six months of the Creek forum to get up to speed in the area. Then pop over to the Stephens, Grady and Garvin forum to understand what the leasing and bonus versus royalty on horizontals is all about. Chatty and nice bunch over there. Then if you are really ready for more, you can go to the MKT PLACE tab above and read there, then to over to MINERAL HELP.
I am in the "never sell your minerals" camp, but you will have to make up your own mind given your situation. Just get informed or you will be taken advantage of.
I too am in the ‘never sell your minerals’. I am attempting to learn all about mineral rights, pricing, etc.
We also own mineral rights in Creek County, Oklahoma. I have JUST started the overall research. I’ve learned a lot in the past year. My family owns mineral rights in Lea County, New Mexico.
My over arching question has been, “What possessed my Great Grand Father to get on a horse, or board a train and go from Tulsa, Oklahoma to Hobbs, New Mexico and buy all the land?”
Eventually he sold the land, BUT kept the minerals. Three generations later, it MAY pay off. It may not. But our family will NEVER sell the mineral rights as long as I’m alive (I’m currently the family personal representative for all things to do with our mineral rights).
And my parents garnered a few thousand dollars for a three year lease on 40 acres back in 2008, nothing much happened. But we still own those mineral rights and you just never know. Until horizontal drilling we perfected, there was not much interest in a lot of these areas. Once they did perfect it, interest spiked.
The one thing I found out about Creek County is the wells they drill are much shallower than those in New Mexico or North Dakota. That means it costs a lot less to drill them. Yes, they are getting a bit less oil out of the ground, but as the production costs were 2/3’s less, everybody makes money.
Small world! I grew up in Hobbs! There is lots of oil in that area! Lots of Oakies ended up there. My dad was a geologist for Conoco there for 14 years. That is the west side of the Permian Basin. Very hot spot right now!
Yes. And my grandfather purchased what appears to be around 900 - 1000 acres. During the Great Depression he sold all the land. But he kept the mineral rights.
God bless my Great Grand Father. But there HAS to be a ‘back story’ as to what caused him to visit Hobbs, New Mexico around 1910/1915. Granted New Mexico became a state on Jan 6th, 1912. But to go there and buy all that land. He had the money. But he was from Oklahoma. He also visited Kansas and two other counties in Oklahoma where he purchased (then later sold) land. But the family has held these mineral rights for over 100 years.
I’m always interested in history and my family history in specific. Too bad no one thought to write all this down 100 years ago. Too late now, as no one is alive.