Inflation Information

Sorry if this isn’t correct I’m’ new at this. Sections S7, T3 N,5W any information on what’s going on with possible buyers of mineral interest and how many acres are in this area. Thanks

Welcome to the forum!

If you recently inherited, then there are some important steps to do before thinking about selling.

-Each section has roughly 640 acres. You will not own all of 7. There are hundreds of mineral owners in that section. Sec 7 is not exactly 640 acres due to the curvature of the earth. If you need the exact amount, I can tell you where to find it.

-You need to understand what you inherited and how many net acres you have. You should have gotten a description of your acreage. It might look like 1/4th undivided interest in the NW4 NE4 7-3N-5W. From the description, one can figure out your net acres.

-There is current production in section 7 from an old field and there is about to be new production from deeper in the field. You need to contact the current operators and notify them if you are a new heir and to transfer royalties to you. You also need to notify the new deep well operators that you recently inherited, so they can add you to their mailing list. At least two new wells are just online and will have payments in about six months.

-You need to file your name and address and any title or probate documents with the county clerk in Grady County. That is the official legal repository.

-Any offers to buy are generally lower than the future royalties might be. Most buyers make offers on current production. They intend to make a profit off of you.

-Wise to find out what royalties you currently have and then find out the potential of these brand new wells (much higher than the old wells) before considering selling

Do you have specific questions?

M. Barnes Thanks for your knowledge and time. It is most appreciated. Im new to the forum but have been a mineral rights owner since about 2005. After my mother’s passing my Dad had an attorney divide the mineral interest between me my sister and brother. Although I receive all necessary information by mail other than the monthly check I have a tough time understanding most of it. Looking for something else I came across a letter from a company that had made an offer to purchase my mineral interest. The letter was dated 2019 but since retiring I’ve been tossing around the idea of selling but I don’t have a clue how to go about it. But now that I’ve been reading the mineral rights forum I’m thinking about waiting to see if it’s the right decision. Im thinking I should probably wait and see how the two new wells work out. If I sound confused it’s because I am confused. But now the readers know a little more about me. Thanks again

Welcome to the forum.

Any offer made back in 2019 is probably stale by now. A lot has happened in the last three years. Just like surface real estate-the value is related to location, location, location. In general, the bulk mail out offers are made by companies that have a staff and a business model and they fully intend to make a profit off of buying minerals. Sometimes they win, sometimes they don’t. The mineral owner needs to know what is going on in their area, know the potential of future activity and be ready to negotiate if they really want to sell. Or if future drilling is pending shortly, they might want to wait and see and collect royalties instead. If you sell, there are various private buyers and auction sites. You should talk to your accountant or financial advisor about the tax consequences of selling, gifting or donating your minerals. Each person has to do what is best for their financial situation.

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