Hello all! I am new to the Mineral Rights scene and I was hoping that I could get some advice. A cousin of mine was recently contacted because she inherited 1/8th royalty mineral interests in Kingfisher County and an oil company wanted to purchase them from her. We had no idea about the mineral rights until we were contacted and so had no idea what they were worth. They offered 2500 per acre, but based on what I have seen Kingfisher county is producing more oil than other counties in Oklahoma. I was wondering if there is any good way to find out what the royalties should be on a property like that? How do you find out how much oil a plot has produced? I should be able to figure out a value if I can figure out how active the interests have been, but I have not seen a good way to do this, considering I do not live in Oklahoma and cannot go down to the County Clerks office myself. Any help that can be offered here would be greatly appreciated. The plot is Sec. 21-18N-9W of Kingfisher county if it helps.
What company wants to make the purchase? Newfield is a very large company actively drilling in your area and they should be offering better than $2500 per acre. There are reports of $11,000 plus per acre in Kingfisher. You may be getting offers from a land company that is buying to flip the leases for a profit. Info is on the Oklahoma Corporation Commission website.
There are a number of people on this blog that have experience and can give you more info and I'm sure some will reply. I am also out of state and was in the same boat a few months ago but I can pretty much say that $2500 is not even close to what it's probably worth. Unless she needs the money she should consider holding on since Kingfisher is getting a number of new wells and is one of the hot spots in Oklahoma.
Yes, there are ways. First of all, whatever the first offer is, it is usually low to final offers. They just want to see if anyone will bite. Much of the info can be found for free through the OCC and other sources. Friend me with the blue icon and I can walk you through it.
Right, we had been offered $12,500 a couple of months ago although they are drilling next to our section and we expect a pooling order before long.
I think as the people who know the lest like me and others we need to tell others like us people not trying to take advantage of us those of us not in the biz me and my wife have I chance in our life like this we have to get it right so ill tell you any and ALL I KNOW WE WHERE OFFERED 7.000 PER ACRE 2 16N 6W PLEASE ANYBODY HELP ME TO MAKE THE RIGHT CHOICE FFFOR MY FAMILY THANKS
I have a 1/8th interest in mineral rights in Kingfisher County and I got an offer of $10,500 an acre.
2-16N-6W. If you have an offer it is usually low to the actual value of the acreage. If you sell, you give up the royalty potential forever, so it is a short term versus long term decision. If you are elderly and have no heirs, then you might lean one way. If have a family and want to think about them, then handing on might be a good idea. You also do not have to sell everything. You can only sell a couple of acres. If you have medical bills, then that may be a valid concern as well. But don't sell just because someone offered you an amount. Get informed first.
Your section is right next to a section that was just pooled in Nov 2016 for $1250 3/6ths, $1000 1/5 or $0 and 1/4. The bonus is piddly compared to the long term payout of a well- usually. So that is the general idea of lease bonus amounts in the area.
Friend me with the blue icon and I can walk you through a strategy for thinking about selling or holding.
I would not sell my minerals unless it was 100% necessary. I would lease and try to get 1/4 royalty interest. Not new at this game - 35 years plus managing minerals. Oil always goes back up, because operators can not drill without money and interest rates are going back up.
Market Watch Report: "Why oil could go to $100 again soon." http://www.marketwatch.com/story/the-trump-oil-trade-and-why-oil-might-soon-reach-100-again-2017-01-09
we have a 5/32 and we are held by production please where is your area and thank to everyone who gives info it is greatly valued thank you all and please continue
Double those offers to at least $20,000 per acre. Exxon has made Permian Basin deals of nearly $10 billion in just the past two days paying over $30,000 per acre which is lower than record values but still higher than historical averages.
Thank you very much for all of your responses. At this point I am less interested in selling the property and more interested in finding out what the royalties are and what they have been in the past. Any information on where I can find that out would be greatly appreciated.
Aaron, that section has had quite a bit of production over the years. Which wells might have belonged to your relative depend upon the description of the mineral tract and whether it was in the spacing unit for a particular well. Very easy to look up. Friend me and I will tell you how to look it up.
Also, you can look up unclaimed funds at the OK treasurer's office. Companies will hold the funds for several years and then turn it over to the state. Don't use any website that claims to help. Only use the OK treasurer's site.