Hello, We continue to investigate the possibility of selling our 200+ acres of mineral rights in Mc Clain County. We appreciate the comments and contacts with us so far. We are following up on everyone. Right now … we’d also like to hear your experiences with selling - if you’ve ever done so…The good, the bad and ugly :). Is there anything you’d do differently after having walked down that road? First hand experiences only. We’re all ears. Thank you in advance.
With 200+ acres of minerals, hire a lawyer.
If you were only selling 1/2 an acre, it wouldn’t be worth the cost, but the business risk with a large interest is different.
I have to agree. That transaction is going to be over a million dollars . You have to be sure the deal is 110% in your best interest.
Thank you. We’ve been discussing that; however, we live California and are perplexed by how to find a competent and honest attorney in that region who has experience coupled with knowledge in this topic. We need personal advice from this who have been down this road. We are truly teachable and all ears. Presently we are in the process of checking everything out that has been recommended thus far - but we still need more suggestions for which professionals to contact. This is challenging but we are determined to become as equipped as we can be in order to make informed final decisions…Do we sell or not ALL 240 acres and which professionals help us with this process? Thank you.
Consider only selling part of it if you have to sell at all. You could split the risk that way and the tax burden as well.
The upcoming royalty checks may be so big you will change your mind about selling.
But the offers will go down after the first royalty check. No?
Chance-If the buyers know how much money is in suspense on your minerals, the buyers may be buying the minerals with your money.
Note the question from the original post.
Like the previous response, do you have contact info for us? We will follow through and speak to every single resource suggested. Thank you.
This is an interesting comment. Would you like to expand on what it is that you know that would prompt this positive outlook. Thank you.
Not sure that we understand what you mean. Help us out. Please explain. Thank you.
Our family has 10 acre Royalty in Section 8 T9N R4W in McClain County purchased in 1954 for $1100 we have been offered as much as $15,000 per acre recently because there is horizontal oil and gas drilling happening in this area. We chose to sign a 3 year lease in October 2017 with a company that paid us a lease bonus of $1,500 per acre and gave us a 20% royalty on our portion of any income from wells in a 640 acre unit. The horizontal well should be drilled this year after all the approvals are received from the Oklahoma Corporation Commission. If the well is successful, the operator will have to make arrangements to deliver and sell Oil and Gas produced and only then will checks be sent out to the royalty owners.
Wells produce the most right after they are drilled. The first royalty check is typically the biggest because it is 6 months of production and produces the most during this span. There is a strong decline in production then it stables off (typically).
If try and sell your minerals after the first couple of checks, they will not be worth as much since you received the royalties on first production already. This is not always the case. Just my observations. Lots of variables.
$15,000/acre based on what royalty? 1/4?
Kenny-the purpose of your response is not clear.
Does helping a prospective “seller” realize the “buyer” was going to use the seller’s pooling bonus and accrued royalty to pay the purchase price qualify as a “first hand experience?”
If not, what is your definition of “first hand experience.”
@Frank_Pfisch my response was directed to a poster (whos post has been deleted) who did not actually speak to nor abide by the original question. The original questioner asked for “first hand experience” from people who have actually sold minerals.
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Thnx Kenny. I misconstrued your post.