I received a cold call from 1907 and they offered $2500 an acre to Buy not lease my rights. I own the rights to 30 Acres in McClain County. Section 9 T07N R04W. I haven’t gotten a decent royalty check from Sunoco ever. Plus recently joined class action lawsuit against Sunoco but figure that’s a whole lotta nothing for a small fry like me. Should I sell or hold on? Been holding on for decades. Why the sudden interest By 1907? Whats a fair price? Thanks in advance for all comments.
I wouldn’t even lease my mineral rights let alone sell them for that price.
What economical analysis do you base this opinion off of? I own plenty of minerals I would sell in a heart beat for that price? Do you own in section 9-7 N-4W?
If so, what’s the potential of this section? How many possible zones will be drilled? What’s the estimated recovery of those zones? When will those be drilled?
Chance asks good questions above. The business decision should be driven by identifying the various risks and deciding which ones you are willing to sell. Lets face it, we are all in the dark on what can and will happen in the future. Furthermore, answering some of those questions can be costly and beyond the reach of most mineral owners, (and even some mineral buyers for that matter). Its like feeling around in a dark cave without a flashlight trying to decide if you have a gold nugget or a worthless rock in your hand, Some mineral buyers have better flashlights than others.
Not commenting on a “fair value” since that is between a willing and informed buyer and a willing and informed seller neither under compulsion to buy or sell agreeing to a price. However, 9-7N-4W has an Increased Density hearing case pending for seven more wells. That is the part the seller needs to know as the buyer certainly knows that fact.
Sad ending to my story. Back in 2001 I sold my rights. I thought I kept these. Confusion over two operators on one deed. Im gutted.
Hello Blanchardniece, Sorry to be so late to the forum but if you’re still on the fence, this may help. I have working interest in an EOG well in section 5, just nw of your section 9. The Sturgell 0805-1H runs n-s from 5-7-17. Generally speaking, 10k ft deep & 10k ft lateral. It produces about 450-500 mcf & 180-200 bbl/day. EOG is administratively slow to get their decs set up but once done, all seems to be fine. I think others have afforded excellent advice in suggesting you wait & see what develops in the near future. About a year ago, EOG stated in a quarterly report (don’t remember exactly which one) that they planned 1100 wells in the area. Sounds outrageous to me but that’s what it said. Hope this helps. Joefly