Inheriting Mineral Rights, YIKES!


#1

Earlier this year I inherited minerals rights in 24 township, 7n, 7w. I have been multiple offers to sale the land but have no idea where to even start. Just this week i got a notice, that Echo energy has asked for a continuance on this?

Any information on what is going on in this section? I would possibly be interested in selling.


#2

Last minerals sold in July 2018 went for $10,500/NMA X 80 acres (from one LLC to another… purchased from individual 2 weeks before that for $7,500/NMA)… it appears your section is HBP (held by production) by 2 very old wells so not sure what your royalty % is. NOTE: Your section is right next to Continental’s SpringBoard project.


#3

Echo Energy has filed for a horizontal well. Slow down and get informed before you even consider selling. There are a whole bunch of companies out there that send out letters to everyone that has acreage in pending well areas. As you can tell from Don’s comment, many get acreage for lowball amounts and then flip them for higher amounts. I am sure you would rather make the royalty money from good wells or get the higher amount in a sale. If you do decide to sell, then get competitive bids.

Read all the comments in the Grady topic area over the last six months. Get informed! The potential for more than one horizontal well must be factored into your thinking.


#4

First thanks for the information. But that leads to more questions. I know I found a link that showed sales, but now I cant find it. How would I research to see what is selling in this area?

Blockquote July 2018 went for $10,500/NMA X 80 acres (from one LLC to another… purchased from individual 2 weeks before that for $7,500/NMA Blockquote

Next how do I go about getting a valuation on the mineral rights to find out what they might be worth? You inherit a house you have a estimate next week, you get mineral rights and its HUGE process to get it all figured out.

And any other suggestions I am open to ! lol


#5

idocmarket.com Grady website.

Real estate is easier to appraise because you can see the land and the building on it. Lots of experts in that category for value and usage. Mineral rights are harder to appraise because you cannot see what is down there all that accurately. Price of oil and gas changes all the time, flow rates, technology, etc. all change. Certain licensed petroleum engineers can give a professional opinion on the value of a flowing well based upon certain parameters at a certain price at a certain time. How many wells will be drilled? How many reservoirs are there? What is the timing? Those are the harder questions. And there are not as many qualified experts out there. There are several firms in Oklahoma City.