I have mineral rights on 5 acres in Caddo County and a company has made an offer to purchase them from me. How do I know if what I am being offered is a fair price? We have received letters from 2 different companies (1 in state 1 from Texas) but the one in state so far is the only one to make an offer. I've been told I should call around to other companies to see what they may offer but honestly I don't even know where to start. Any help or advice would be greatly appriceated.
If you could give the section township range of the property that would be really helpful.
There is different activity in different parts of the county, and location is important.
Given location, there are some ways to go about putting this up for offers which I'd be glad to share with you.
sec 18 10n 9w
The companies are interested in this part of Caddo County because of the Woodford Shale.
There was one somewhat disappointing well (the Straight Arrow) that was about 5 or 6 miles away, and
that is about the closest they have drilled to your section.
There are some records across the county line in Grady County showing minerals in this area that sold for
$1500 per acre. (In the middle of the play, in Blaine or Canadian county, they would sell for a lot more.)
For a small tract like this, if you want to put it up for bid, one place I would recommend is the Mineral Hub.
You can name your price, or solicit offers. I can personally recommend them. Another place is Energynet, which is an online auction firm. It will sell to the highest bidder, subject to a reserve. There will be a commission if sold this way.
If you need any more details, let me know. I also know individual buyers if you prefer to go that route.
Where this is located do you think that it would be worth holding on to? I talked to my Dad this morning and he said they've never realized anything from it. I'm just not sure what to do.
It's a very personal decision. If this were in the middle of the Woodford play, I would advise to hang onto it unless you really needed the money quickly. However, it is on the edge of the current known play; it's enough to attract attention, but not enough to be a sure thing - especially if no one has approached you about LEASING the property instead of buying it. (It is true that you have not been approached about LEASING the property rather than SELLING it, correct?)
I can assure you that the oil/gas companies involved have been leasing everything left and right in Blaine County, Dewey County, western Canadian County, and small portions of Caddo and Grady county.
Hope this helps; let me know if you need more information.
There is a lease on it now that is up in October. But they have not contacted us about renewing the lease. I had thought about calling them to see if that was going to be an option.
The name of the company that has the lease would be useful information. Also, if you don’t mind sharing the price that you were offered to purchase, that would also help in this decision.
Jennifer S. said:
There is a lease on it now that is up in October. But they have not contacted us about renewing the lease. I had thought about calling them to see if that was going to be an option.
The company that the lease is with is: Douglas Howard Inc. I’m not comfortable with sharing the price if that’s OK.
They are definitely a small company, and not one of the players in the Woodford Shale. They either leased it with something else in mind, or they leased it hoping to sell the lease to a larger company. The major companies involved in this developement are: Devon, Cimarex, Continental, QEP, & Marathon. And Cimarex has the largest presence in this southern part of the play.
Jennifer S. said:
The company that the lease is with is: Douglas Howard Inc. I'm not comfortable with sharing the price if that's OK.
It’s with Cimarex. I have a call into them now.
That’s very good. But keep in mind, Cimarex LEASES properties, they typically don’t offer to buy them.
Jennifer S. said:
It's with Cimarex. I have a call into them now.
if they were to renew the lease would they offer more money and just stay the same?
I’m curious. Do you own surface rights as well? My experience has been that companies want to lease the mineral rights. Did you advertise to sell the rights or did they spontaneously offer?
Where are you getting your sale info in Grady County???. Most folks are selling for around $1000 from the last few I have talked with Not saying your price is not right just have not heard that yet…Most of what I see going on is a major push by Contiental and Marathon to develop Grady and Portions of Caddo w the 3D sesmic that is currently taking place preformed by Dawson Geophysical,XTO has entered the game in a few places along w Devon and Chesapeake, mostly the 7n 6w township a few nice wells have been drilled there in the last year or so and more pad sites being constructed…,About time Contiental’s price is $500.00 and acre lease w 3/16 roylaty. and talked to another of there landmen yesterday and they are not moving on price…lol…xto is up to $650.00 along w TS Dudley who I think is doing XTO’S LEASING…>??? Anyway if your in the need of cash and want to sell the above mentioned sites are ok OR even better yet!!! List your minerals on Craigslist in the business section( no comission )…Hope this helps…