Currently in the process of inheriting some mineral interest in a few sections of 16N-10W (sections 12, 11, 9, and 2 are all that I know of currently), I'm curious to see what offers y'all have received, from who, your royalty interest and what section/s, any of this information would help since I have no idea what minerals go for in the stack and scoop, I'm familiar with the Permian, but I'm trying to get a grasp on the whole Oklahoma scenario. I figured this would be a good subject, and hopefully will be beneficial to others who may be in the same boat as me.
Keep in mind that prices vary wildly...offers and TERMS vary wildly. Post production expenses will kill you and can actually run ABOVE 100%...MEANING you can owe a company money for your own gas. This happens and was subject to more than one lawsuit. DEMAND audit protection (if errors found they pay for the audit). DEMAND transportation expenses be severely limited. and, JOIN the National Association of Royalty Owners (NARO) or some group. Below I will try and upland a file of recent mineral sales without further comment from Blaine County. The old rule of thumb, somewhat inaccurate, is that a LEASE bonus will be one-third of the SALE price for minerals.
127-BLAINECOUNTYRECENTSALES.pdf (54.3 KB)George,
16N-10W is one of the best areas in the STACK. Depending on the activity, you should be able to get anywhere from $14,000-$20,000. If you own large chunks of acreage, you might even be able to push that price higher. There have been a lot of rumors of $25,000-27,000 price per acre, but I have not seen it from a regular mineral purchase.
Feel free to email me at benablake@gmail.com if you want to discuss the matter further.
George, you should be getting revenue or about to get revenue from wells that are already drilled in 2, 11, and 12. Quite a bit in fact.
You will probably get lots of offers to sell. SLOW DOWN! That is the last place I would sell right now. Read the last year of discussions on this board about that area. Look up the most recent investor presentations for Continental Resources, Newfield, Marathon and see their plans for the area. (Take them with a grain of salt). There are plans for quite a bit of multi-unit drilling in that very prolific area. Get informed as most of the offers to buy are probably lowball in my opinion.
George:
Let me know who the record title owner is and I will do a quick search to see what royalty each interest is subject
to and that will give you a better idea what prices you can or might expect.
Todd M. Baker
I think that the purchase price for your section 12 minerals would be at or higher than $25k/acre based on the last analysis I ran...not sure what other mineral buyers are offering at the moment. The actual amount could be a little lower or higher depending on your royalty rate and whether you have a net or gross lease. The high value is primarily driven by the quality of the geology, and the multiple wells being drilled across those sections. This eliminated two major risks for us mineral buyers, as timing can crush any return on investments we may be able to achieve...having wells permitted and drilled obviously eliminate that risk.
Your section 2 and 11 minerals would have similar geology - so that's a good start, however, Marathon is not as active as Newfield at the moment and the value per acre would get dinged for timing uncertainty...never-the-less GREAT ACREAGE!
Similarly your section 9 minerals would probably price close to the section 2 and 11 minerals. The geology will be similar (all of your minerals sit close together and share the same great rock).
I'm actually working 16N11W this upcoming week and will be taking a close look at recent sales, I'll pass the info along if anything jumps out that conflicts with the thoughts above, or elsewhere on this post.