My family is being offered $450/acre X 60 acres, with 18.75% royalties on oil and gas. Does this sound reasonable? This is the first time we have been approached with an offer, since my mother passed away and willed the mineral rights to us. This involves mineral rights in Dewey County, OK., section 32-1916.
Needing the Township and Range.
Example: Section 32 16N 16W
there was a report on a new well in sec 29 just above you that came in at 167 bopd and 828 mcf.
leases go for $500-$1000 in that t. and r.
Thank you for the replies. It is Section 32 19N 16W.
The last lease bonuses in your area was $250/ac on 11/6/14 in Sec 28-19N-16W and $400/ac on 9/8/14 in Sec 22 19N-16W.
The only active well I see was completed in 8/17/14 in Sec 22-19N-16W by Valpoint Operating with initial production of 216 bopd and 8564mcf.
I think I would counter with a 20 or 25% royalty.
I have another question. The mineral/oil rights that I am referreing to are in Dewey County, OK, section 32, 19N, 16W. My family was being offered $450/acre for 60 acres for a 3 year contract. I was under the impression that the payout would total $81,000.00 ($450 x 60 acres x 3 years). Now they are saying that it would be a total of $27,000.00 payout. Wouldn’t that equal out to only $150/acre or am I looking at this wrong?
It's not that amount per year, but for a 3-year period and if they drill, it's a one-time lease payment.