Is it time to sell mineral rights

Oklahoma Mineral Rights Alfalfa County, OK
1

Recently inhereted 80 acres in section 9 township 23 N Range 12 W.

There is currently no lease and not producing.

Is there any known activity in that area?

And would you sell it if it were your's

2

Sell low, buy high...that's what you would be doing now.

Do you need the money? If not, then why not keep the minerals and let the next generation have it? Share it the way it was shared with you. And you have capital gains to pay as well. Check with your accountant before you sell.

There are a number of wells in that section, some still active. Do you get a check now? Deeper zones may be available for development and probably it hasn't got any horizontal wells yet.

3500320837 15307 FRANTZ 1-9 OIL PA 9 23N 12W Indian CSW4 NW4
3500320213 61 ONEIL /A/ 1-9 OIL PA 9 23N 12W Indian SE4 NW4
3500320170 3808 BRADLEY 1 OIL AC 9 23N 12W Indian N2 S2 NE4 SE4
3500320179 61 ROARK /A/ 1-9 OIL PA 9 23N 12W Indian CSE4 NE4
3500320203 3186 BRADLEY 2 OIL AC 9 23N 12W Indian N2 S2 NW4 SE4
3500320209 3186 THOMAS "B" 2-9 OIL AC 9 23N 12W Indian CNW4 SW4
3500320193 3186 THOMAS /B/ 1-9 OIL PA 9 23N 12W Indian CSE4 SW4
3500320234 9998 D BOOZE 1 OIL PA 9 23N 12W Indian SE4 NW4 NW4
3500320493 22576 ROARK 1-9 OIL AC 9 23N 12W Indian NW4 SE4 NW4 NE4
3

I have some old interests, (80 years) that are still paying. Many have been redrilled, several times. I just heard a story about someone that sold their 10% share of Apple in 1976 for $800. It is worth somewhere in the neighborhood of 50 billion now. Mineral interests are cheap to own. If they ever do drill there, you'll be glad you kept them. I always get excited when I get offers to buy because I know that means somebody somewhere is thinking about drilling there. Good luck

1 Like
4

Thank you for the reply.

I receive no checks for anything. Only had 1 lease in the last 10 years (3 year lease) through Lowery, that expired last month,(Lowery declined to renew lease) and no offers as of yet.

5

Thank you for your reply,

No one is offering to buy. Its just information gathering at this point.

But, if nothing is happening there, and never has, a few bucks in the pocket isn't bad.

And the fact that one one is interested in leasing is a telling sign also.

6

There is a pooling pending for 9.

http://imaging.occeweb.com/AP/CaseFiles/occ5213937.pdf

7

Thank you Mr. McKenzie,

I think I understand pooling, but could you explain?

I know Sandridge is still looking in the area.

8

M A, I get offers occasionally for properties that have never been drilled on. With horizontal drilling, new areas have now become possibilities. Just my opinion that it doesn't cost you to own, but if someone drills there 10-20 years from now, a royalty interest check would be a nice bonus. Ron can probably explain pooling better than I. But basically, a well could be said to "drain" oil out of 160, 320, or 640 acres, depending on conventional, horizontal, etc. if your 80 acres is next to the drill site, they have to lease all or part of your 80 acres of oil, too. They will try to contact everyone in that, say 640 acres, to lease their interest. If they can't find them all or some don't want to lease, they apply to the corporation commission to "pool" those interests into one big pot. The pooling order will include the best offered lease bonus and royalty interest. For those that didn't want to be drilled on, or were holding out for better terms, or if they just couldn't find them, they will be given the lease bonus and royalty terms and payments upon a successful well. If they can't find them, the company still has to account for their money, should they ever show up to claim it (eventually it will be turned over to the Tax Commission unclaimed property). It's my understanding that horizontal well spacing is generally considered to "drain" oil out of 640 acres. They run with section line spacing. So someone could drill a quarter mile, half mile, etc., away from you, but they will be considered to be taking oil out from under your land too, so they have to pay you as well. A lot of the standard straight up conventional drilling was considered to only take oil out of a 160 acre square area. So, they would have to drill almost right on top of you to include you in the payments. That's why even areas that were untouched before are now getting included in leases. That's my limited knowledge on the subject. Hope that helps. And good luck with whatever you decide.

9

M A I sent you a friend request. If you want to accept it I will give you my # and go over the pooling .

10

Thank you

11

Never sell your mineral rights.

1 Like
12

and what if your wife is sick, you have no $$$ and a surgery may save her life and you could sell 5 acres for enough $$$$ what about then????? never say never!!!!!