A relative who inherited a portion of the same mineral interest my mother owns is looking to sell his mineral interest in Kingfisher Co., Sec. 2 16N 9W, 3.6 net acres leased at 1/8 royalty. He received an offer from Sooner Trend Minerals out of Edmond, OK for $52,560 for his 3.6 net acres. Is this a fair offer? I haven't been frequenting this board as much lately, but I seem to recall some areas of Kingfisher were or are worth $20K an acre or more.
Personally, I think it is too low. Read up on the area in the Newfield Q3, Q4 2016 and Q1 2017 investor presentations. Potential for future drilling is why he/she is getting offers.
I got $10,500 an acre from them with only a 1/8th interest.
I believe the fact that it's only leased at 1/8th royalty if it's HBP is a drawback but there is sure a LOT of action in that STACK area especially in Kingfisher Co. He could always ask for more if he wants to sell. All they can say is no and they might just offer more.
WITH ALL DUE RESPECT FOR M. BARNES, LET HIM PAY YOU MORE.
SOME-----YOU DEFINE-------OKLAHOMA WELLS HAVE BEEN "BARN BURNERS" I BELIEVE
THE HYPE IS JUST AS STRONG AS THE PRODUCTION. WOULD I BUY AT THIS PRICE? NO, BUT
I HAVE OTHER OPTIONS....WOULD I SELL AT THIS PRICE? YES, AND NEVER LOOK BACK.
GREED IS A KILLER. ALL THIS OPINION FOR A VERY GOOD PRICE!