Hello:
I just joined this discussion group yesterday and this is my first posting.
My wife and I own the mineral rights to 65 acres in McClain County
14-4N-3W.
We have been offered $650.00 per acre for selling these rights.
My questions to the group are as follows:
1.Is $650.00 per acre a "lowball"?
2.What would be a fair price in todays market?
3.I saw on another post a company called CLC. Is this Lu-Ray Petroleum?
4Another gentleman posted that CLC had offered about $1200.00 per acre for his property, but it is not clear to me if it is in the same area.
Never having sold mineral rights before I am in the dark and would welcome any suggestions.
Thank you very much.
Don
Don - I believe that 4N-3W is in Garvin County. Could you re-check that legal description? With that said, yes, I believe you have received a low-ball offer.
Hi Marcus:
It looks like you are correct.I apologize but this whole process is brand new to me and I am somewhat in the dark.
The correct description is S/2 NE/4 of section 2 Township O6N Range O2W.
What do you think is a fair price?
Have you heard of a company called CLC, which I think is Lu-Ray Petroleum?
I spoke with a broker yesterday and she thought it was a low ball but although she thought she could find us a better deal, she wanted 10% commission and I am not about to do that.
Any other help you could give me on this property would be greatly appreciated.
By the way. We do not own the land, just the mineral rights.
Thank you
Don
Charter oak production just completed a well in sec. 27 on 5/19/15 it ip 2 217 BOPD AND 1680 MCF .
Most people would be happy to own your chances, once there gone it over.
Hi Don,
I might defer to others who know more about offers in that area as to what a fair price would be. It looks to be pretty far east of the current activity in the Woodford and Springer from what I can tell and there hasn't been a lot of leasing in your section per my search of online deed records. If it had been closer to 4N-3W this would all be a very different story. Anyhow, if you've received an unsolicited offer of $625 per acre chances are you can negotiate for more if you want/need to sell.
Sorry, I was going with the 4n 3w not the 6n 2w. That is not as good.