We just signed lease on our mineral rights in Custer County and now a company is offering to buy our mineral rights. How do we find if or when they plan to drill - or what value of mineral rights are? the Landowner/Oil Company says the offer is low ball - so wondering if we should sell or hold? Section 34-1 Township 13N Range 16W
You can watch for permits using the Oklahoma Corporation well records site. Check not only your section, but the ones immediately to your north and south as locations are not always in the section they plan to perforate.
Offers to buy frequently come before drilling and are often lowball just to see who will bite.
You will also get mailings from the OCC right before drilling so that you are informed. Make sure your address is properly filed in the Custer County Courthouse along with any title info such as deeds or probates so the lawyers for the operator can find you.
There are cases pending by Arnold Oil Properties for horizontal well to the Red Fork, so that is encouraging for your section next door.
It might be wise to just sit back and wait to see what happens. The value of the mineral rights is a longer discussion. More valuable to you if horizontal wells are drilled. The lease allows the operator a certain time frame in which to be allowed (but not required) to drill.
If you have a magic 8 ball, ask if they will drill, shake it and see what the response is. Unfortuntely theres no way of finding out if they will drill a well, especially a newly taken OGL. Ive had some properties where Ive signed 4 OGL’s that still havent been drilled. Its the most frustrating part of being a mineral owner as you never know if they will drill the well or it they do and they file a 6 well incresed density and they drill 1 well, will they drill another well, 5 more or none. I used to tell my now deceased wife, going to the PO Box each Thursday was like the kids on Christmas morning, never know what youre going to open uo, but when you get the paperwork they are drilling, its like Santa gave you everything you wanted!
Mineral deeds are subject to deed tax stamps in Oklahoma. The rate in OK is $1.50 per $1,000. So if the deed stamps are $15, the sale price was $10,000. Go to the courthouse and pull recent deeds (they are probably on line in the courthouse clerks office)… Look for deeds that state the actual NET MINERAL ACRES. That will tell you what they paid per acre.
