Howdy… just was contacted to purchase my mineral rights to a property I have inherited in McClain County (that I never knew until today was mine). They are offering 7500 per acre. Sounds like there must be something there!
Can anyone tell me what to do next? How to find out value? How to decide if I should sell? Thank you so much.
I’m in a relatively similar situation. Where are your acres located?
It is more helpful if you state the Section, Township and Range. Different parts of McClain are more valuable than others. Depending upon where your acreage is located, that might be low, reasonable or high. There is quite a bit of interest in western McClain county right now. Eastern side, not as much.
That being said, most first offers are generally low to actual future value. Everyone who makes an offer thinks that they will make a profit off of you.
As Martha mentions, the value of your minerals is very dependent on the location so the offer could be low, middle of the road, or high for the specific area.
In terms of how to decide if you should sell, that is usually a personal decision based on your situation and financial goals. If you are willing to do some homework and basic education, it may be worthwhile to hold on to your minerals. If you have questions in this area I would suggest talking with your financial advisor and/or accountant to understand the implications of selling. Another thing to consider is if you would like the up-front cash now but would like to enjoy the potential upside, you could always sell just a portion of your minerals. Just because a company makes an offer for 100% of your interest, you could always counter with a smaller percentage.
Just keep in mind that this is a business negotiation so pretty much anything is negotiable (similar to buying or selling a house).
Hi, Matt
Thanks for the great tips.
My grandpa would say “tell them no, lease offers are always welcome.”
I have mineral rights in McClain County Section 8. I get offers every day to either sell or lease. The latest one was $6,500 an acre with 3/16 royalties. We were in Oklahoma a couple of weeks ago and saw where EOG is setting up, but they are battling with Native Oil right now, so who knows. I was raised to never sell mineral rights, but leasing is fine. Make sure to cross out the 2-year extensions and make sure you’re not responsible for paying for drilling costs. The only time you sell rights is if you’re 90 years old and have no one to pass them to. These mineral rights have been in our family for generations—since 1865, I found out recently. There are some great books out there to help you out. M Barnes is a great resource also. She has helped me out with some great advice. Hope this helps a bit.
Does anyone know if drilling has started in either of these two areas of McClain County: Section 8, Township 9N, Range 4W or Section 17, Township 9N, Range 4W? Larry Smith.
Larry_Dale_Smith, No new wells have spud. Native has pending cases at the OCC in 8 and 17.
I am in a similar situation. My family has acreage in McClain County. We have received several letters to sell and a court order stating something about drilling. Up until those letters, we had no clue that we even owned any acreage out there. My family isn’t sure of what to do at this point. The property is located at Section 34, Township 7 North, Range 4 West. Does anyone know what is going on over there? Any advice that you can provide? I did contact an attorney and he was negotiating, however, I was never told that we could lease.
Thank you.
This section is being drilled by TRP Mid-Con. Was your name on the Order you received from the Corporation Commission? TRP has applied to drill 3 additional wells on this section.
Todd M. Baker