I’ve been offered $4000/net mineral acre at 1/8 royalty for my 5.93407 interest in 14-15N -9W Kingfisher County, OK. Is this a good price for that area at the present time? Thank you.
Is this an offer to buy? You need to know if there are additional wells being planned. Your section is surrounded by sections with multiple infill wells. Many buyers like to make lowball offers right before increased density drilling begins. They want the future royalties and hope mineral owners are not savvy about the future potential.
Personally, I don’t like 1/8th royalties and avoid them like the plague. Many savvy owners focus more on the royalty and lease terms.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Thank you for responding. Nothing new is planned there currently as far as I know but live out of state so am not able to check for myself, hence the inquiry here. Thanks again,
Make sure that your name and address are on file in the county with the clerk or deeds or records. If activity is pending, you will be sent the OCC documents. Get familiar with the Oklahoma Corporation Website as they have quite a bit of data.
Given that the sections 12/13 immediately to your east have five multi-unit horizontal wells, you may get some activity in the future. Time will tell.
0_Royalty-Owners-Booklet-112020.pdf (6.8 MB)