I have 169 NMA in 15n-7w 3/16. Need advice
Can you be a bit more specific about what you need advice about. You can friend me with the blue icon next to my name if you want it more private. That township is very active. Also need the section number.
If you have that many acres up there I'd say get a good money manager if you are not one yourself! You'll probably be getting some new wells in the future. Best Wishes!
If you are getting offers to buy, slow down and get informed first. They are usually low to actual value.
I’m trying to find out an evaluation of what I can get price per acre. Some people are telling me in the 16-17k margin. Other people are saying in the 14-15K margin. I have a number in mind. This has been in my family for years and recently have had to deal with family’s medical bills. So if possible I’d like to speak with someone who is sincere and that is reputable.
What did you decide to do?
Valuing minerals is an interesting side of the business, because once you own minerals, you have zero control over when you realize a return on your investment. You can't force a well to get drilled (usually). So, a mineral buyer must have a clear understanding of their investment objectives. Are they buying for the long haul, and willing to risk having a huge chunk of capital sitting in the ground, not working, for potentially many years?
Most prudent mineral buyers I know will pay aggressively for existing production and then also aggressively for the next well to be drilled in the section (often without knowledge of when that will be). They will usually look at the expected present value of the next well at a 10% discount factor, or perhaps less, add to that number the discounted present value of the existing well, and limit their purchase offers to an amount that would pay out their investment (with little to no profit) on the first well. Then they wait for future wells to make money.
The issue with that is that you generally don't know when the future wells are going to be drilled. Investors can get hammered on a time value of money basis if they shell out $20k/acre with no expectation of near-term density drilling. That said, not all mineral buyers are prudent buyers, and even the prudent ones have different perspectives on investment timelines.
I would say something in the $15k neighborhood is fair, maybe a little less. Depends on how soon it will be developed, which we could dig into easily if you want. If you were 2 townships west, you'd be in the overpressured window and your minerals would be worth perhaps 50% more.
You are in an incredibly fortunate situation. Regardless of how you monetize it,your 169 nma are worth a small fortune, more than most people will see in their entire lifetime. Here's what I would do if I were you: hedge your bets. There is a feeding frenzy going on right now in the STACK for minerals, and prices are at all-time highs. I mean ALL-TIME HIGHS. If you had $2.5MM in your pocket, would you walk into the Bellagio in Vegas, sit down at the Roulette wheel, and put it all on black? Heck no. Don't put all your chickens in one basket. Especially if you have a need for cash now. Sell some now, but absolutely don't sell ALL of it. Probably not even half. Maybe sell 40-45 acres now, put maybe a half million dollars or so in your pocket (which should put a big dent in even the worst medical bills), and you'd still have 120 acres for many years to come.
I also have 288 Nma in kingfisher County in 19N-5 W.
Selling for cheap. Need cash to help out family.
Do you have any suggestions on maybe how I sell this or what company could assist me?
Sure, send me a private message. I’ll check activity in 19N-5W in the morning to see who is buying
Clay, never advertise that you want to sell for cheap. There are lots of companies out there that will certainly lowball you. If you want to help your family, get the best deal that you can. There is a lot of drilling happening in 19N-5W and it is paying out very well. Also, do not sell all of it, just as Justin suggested. Get bids from at least three companies. There are some honest companies out there as well.
Well if they didn’t know before they know now by you blasting it.