Hi, I have an offer on the table for my shared 5 acres in Grady County, 15-4N-5W, and have no idea if it’s a good offer. This offer is through a contractor who works with Continental, and he has put an expiration date of Nov. 14. Can someone give me advise because I am interested in selling, but not for a low-ball offer. thanks!
You may have an offer because a horizontal well was just drilled there and they are about to pay out on it. I just received my division order for the Spies 1H-11X last week. They probably want to buy your minerals before you realize that you have a good well and the potential for quite a few more. If you sell, you will be giving up both the well that is about to pay out and any future wells. There may be a good reason to do that, but you many want to reconsider. It looks like there about 10 horizontal wells in Section 27 just to the south. So you can see the potential for the future. You should have gotten your DO for the first well and the first check should have already come or be any day now.
If you are truly wanting to sell, then you need to get more than one offer. First offers are historically low. See what that first well is bringing you and then decide. There have been quite extensive conversations about buy or sell on the forum. Do some reading and catch up with the pros and cons.
Thank you for the insight - I have never seen checks for more than $100 and usually far less, so the offer of $25,000 per acres sounded good. But it is the first offer, and I really don’t know if that’s fair or not. How do I go about seeking more offers?
I misspoke. 14 has the Spies well. 15 has its own well. Sinclair 1-15-22XH. It is a good well. Have you been getting paid on it? Was drilled in 2015. First sales in 2016.
Same logic applies. Section 27 has many horizontal wells. Just south of you two miles. Gulfport is has 10 horizontal wells and five additional have been requested. Continental asking for 7 additional wells in 6. Section 24 has increased density request to recover 720,000 bbls of oil and 36 BCF of gas.
Since you have posted here, you will probably get some more offers. You can Google Mineral Rights Buyers in OK and many companies will pop up. Your offer will be based upon your number of acres and your royalty that you have now. 1/8th will get lower offers than 3/16ths, etc. Good to get at least three offers. Do not hand over your deeds without getting a cashier’s check. Would be wise to legal and accounting advice. You will need to know what capital gains tax you will be paying.
I have had no royalty checks at all - curious! This is why I am seeking advice. Thank you!
Hmmm. That is strange. Did you inherit since 2016?
no, this was passed from my mom who died in 2010, and had been purchased by my grandfather in the '50’s I believe. He was an oil/gas litigator in Tulsa.
Ok, let’s get it cleared up before you consider selling.
I am open to all suggestions since I am a complete novice. Never paid much attention to this stuff since royalty checks from other counties have been so sparce.
Susan Pulled up Grady County records and did not find your name associated with those records. Looks like a Dianna Blankenship inherited from Jo Ann Fredericks. If this was your mother and she is now deceased you will probably need to have here estate probated before royalties are paid. You may want to contact the division order analysts for the various counties. This can be taken care of fairly quickly.