I received a letter from an investment company over 2 weeks ago wanting me to sell what my sister and I inherited from my mom. He sent me another letter of the mineral deed and letter of agreement. I am not in dire need of immediate cash and he wants to buy my rights for 8300. It’s in Washita County, OK Section 25, Township 11 North, Range 18 West. I receive a check once a year from SM Energy are they the leaser or operator?
Any info given will be greatly appreciated as I can tell he is desperately wanting me to sign.
Babette:
This is not uncommon to recieve offers to buy minerals. This decision is strickly up to you and your sister but you state that your not in need of immediate cash which would be a major reason to consider the sell of mineral holdings. Further, you need to do some research as to what is going on in your immediate area. You state that SM Energy is the operator on your mineral area. What type of production is their well providing? Also, in doing some research of the area, you may learn of future drilling plans of this or other operators. Another red flag is why is this guy "desperately" wanting you to sign. You failed to state the number of mineral acres that you and your sister own but the $8300 is certainly no incentive if you have much acreage. Bottom line, do your homework and learn what is happening in your area before making any type of decision to sell.
Don't ever let someone buying YOUR property rush you. It's a sales tactic that works, but the minerals will still be yours to do as you please tomorrow, the next day, and so on until you do sell....
Best of luck,
If it's paying $13, $8300 is a dead giveaway that something is up, at least until you prove it isn't. It's just too much. How are they supposed to make their money back? It's a truism that everyone in oil and gas wants to make a killing. You have the really high offer for what it is paying now so you are alerted to the fact that someone thinks there is a killing to be made. You either need to search for it, or as I believe, you will be notified in time of what it is if you just wait.
Babette, SM has applied to the OCC to drill another well in 25-11N/18W in addition to the 3 wells that are already there. This would explain the sudden interest in you minerals. You would be selling current and future income.
Babette,
You can contact me through MRF if you like. For the time being, know that Samson and SM have filed permits for 3 wells in your section 25. They will be horizontal wells to the Des Moines formation at a minimum. You have nowhere to go but up. The investment company knows that now so do you. I manage mineral rights a few miles away in Custer County for a lady so I have been watching the area. If you have more than 1/2 of an acre, $8300 doesn't come close to a fair price.
And not wait that long evidently. I think Michaels night job is genie of the lamp!