Grady County, OK - General Discussion


(for Martha) Sorry to plop this here, but is there no way now to send private messages to other members? It seems like I’d messaged you last year, but something has changed with the setup here. I a little lost.


I think you have to reach a certain level of conversation back and worth before you can private message. Quite a few folks were taking advantage and soliciting on the forum (against the rules) and bothering folks.

Do you have a question? Will try to help.


:Martha- Will try to be brief, blunt, and possibly overly transparent; I was going to ask about the offer a company had extended to my brother. (myself, and an uncle also own the same amount, same area, so they are hopeful we’d join, also)

It is for 5 acres (each) in Sec 6 3N 4W in Garvin County, right along the Grady County line. You’d mentioned that wells are planned in Grady immediately west of here. I believe that Marathon has just completed a well just east of here, covering Section 5 3N 4W, and Section 32 4N 4W. If I located this properly on the OCC search, it was producing 700 bbl… Woodford.(I barely know what I’m talking about here)

The offer was initially $14k/acre, but rose to $16k. For us, this was much higher than any previous offers. We get letters about once per month from someone, starting about 1 year ago. So, it sounded good. Then, I’ll read posts of other areas within the Grady/Garvin area of $20k, $25k+. Granted, those areas are likely more active. A person I’m familiar with that works in this field, and in the area suggested it was still a little low. I’ve read that Gulfport paid $1.85 Billion, plus some stock for 85,000 acres in the SCOOP field. That’s close to $22k, not including the stock. My mom bought these minerals 60 years ago. They’ve produced well only for a few years around 2008. We want to sell at some point, as this is too convoluted to pass on to a new generation. Just wonder at what price/time it is wise to grab and run, or wait. Thank you.



The offers will vary greatly from company to company. Some want to buy on the cheap, others offering what they hope will give them a nice return on their investment. Most of the offers are “blind”, meaning the company sending them have no idea how many acres you own or what royalty they are subject to. They will then renegotiate a price, generally lower than what their original offer claimed to be.

As for your statement about Gulf Port paying “$22K/acre”- that is for a working interest that carries a net revenue interest (75% generally) that is much higher than the net revenue your royalty carries (12.5-25%). So it is important to compare apples to apples, as they say.

Do your homework if you decide to sell. There are good companies to deal with that will pay you a fair price. Then there are the others.

Todd M. Baker


Thanks. I should add that this section is currently not leased, so they buyer could participate in the well, if they chose.


Chris, 6-3N-4W is held by production in most of the section by the Arner, Harris, Burgess wells. The Courtright wells went off production in 2009 in the SE quarter. If you are in any other quarter, you are still held.

If you are serious about selling, then it might be wise to get a licensed petroleum engineer to look at your current production and get a value for it. And also ask the engineer to look around at the contiguous eight sections around you to see their value. Particularly section 12-3N-5W which has about five horizontal wells. (That is why you are getting offers.) Then you will have a range of values from your vertical/directional older wells to the potential newer horizontal wells. That will give you a more informed idea about what the right sale price might be. Or you can decide to pass it on to the next generation. Do you keep the acreage and invest the royalties and future royalties (which have their own taxes) or do you sell and pay the capital gains tax and invest that money elsewhere? I have acreage very near there and my offers have been about the value of one-two horizontal wells. So I have hung onto the acreage. Each family needs to do what is best for them.


Posting for a friend… article is from 6 years ago, but still relevant today. OKLAHOMA WATCH: UNCLAIMED MINERAL-RIGHTS MONEY ENDS UP IN STATE COFFERS


Martha, The last lease for Chris was in 1993 for his interest in the W/2 of the section. Can you tell if there has been continuous production on any wells in the W/2 of the section since 1993. He is trying to determine if he is held by an old pooling order or the 1993 lease. There may actually be some formations still open if he is held by a pooling order. I really wish the names of the people who were pooled were listed in the old orders.


Arner A production 2003-2018


oops. it got me before I was finished.
Arner A production June 2003-Aug 2018

Burgess A Production Dec 2002-Sept 2018

Burgess B Production Jan 2003-Jul 2018


Burgess C production April 2003-August 2018


First wells were in 2002.


That is what I was also seeing. He must have been pooled. I will check formations for the wells. Maybe he will have some open formations which would make the minerals more valuable if he decides to sell. Thank You!!!


There were several poolings. I didn’t check them. Do you need the numbers?


I can get them…thanks


It appears the only formations pooled were the deese and north lindsay deese sands. A couple were completed in the upper hart, which is part of the deese. I am thinking all the other formations should be open to lease.


Hey Darla, I was gonna keep you name out of it, so you wouldn’t be associated with a greenhorn. Thanks so much to both you and Martha. I wouldn’t have the first clue without folks like you. Still got this whole deal spinning in my head. Waiting to see what shakes out with my brother. Like I’ve said, there are certainly worse problems in the world.


No problem Chris. None of us have all the answers, but collectively we have a chance of figuring it out. Good luck and let me know if you need any help.


What do you know about the Abraham production just got division orders and don’t understand them at all. they actually sent the first ones out then called and said they were wrong and wait for the second set of papers how do you know which ones are right?


I need the section, township and range in order to answer your question.