Mineral sales in 6-7N-4W


New to the forum and looking for information about recent sales of mineral rights in McClain County 6-7N-4W. Looking specifically for prices per acre for recent sales. Thanks.


Are you receiving run checks on the Newfield’s Brooks 1H-6X Well?

If so, and if you don’t have a pressing need for cash right now, the better business path (IMHO) is to hang on to what you own.

If you are going to sell, a reserve analysis by a disinterested PE would be useful to your decision.

Others here have differing opinions. The best analysis is to consider where you would be if your ancestor had sold the minerals to buy a new car.


We signed the lease with Newfield in 2017 and receive two royalty payments in early 2018 totaling about $400. So not much in royalties. So, a purchase offer of $7000 per acre (for 14 acres) didn’t seem ridiculously low. Thanks for the advice


Sell half keep half. Always ask for more money.


Per the OTC, the Brooks 1H-6X well made 63,00 barrels of oil in 2018. A $400 royalty check on 14 net mineral acres doesn’t smell right. Do you own an undivided fraction of the minerals under a 14 gross acre tract? Does your lease describe a tract “containing 14 acres, more or less”?


There is some confusion about how many acres are owned. We’ll have to wait of clarification from a title search.


Once you get your title straight, the equation for royalties is:

net acres/spacing acres x royalty x % perforations in your section. The Brooks well is a multi unit well, so the production is split between 6 & 7 at a percentage determined by the OCC based upon the actual perforations. It was supposed to be 50/50, but might not be that in the end.

Section 6 and 7 are not exactly 640 acres due to the adjustment for the curvature of the earth. . This is a print of 6. I get 631.68 acres image|356x317

Don’t know what your royalty is, but assuming 3/16ths, the formula would be: 14/631.68 x .1875 x .50= 0.00207779. That is how much of every barrel or mcf you would get (minus any taxes or post production charges).

The lease will probably have a clause that describes the original gross patent amount-not your net amount of acres. You could tell by your lease bonus check and early paperwork back then how many acres they thought you had.


Thanks, this is helpful. It appears that the lease only covers 5.2 acres. Isn’t it possible that there are additional acres owned by us in this area which aren’t subject to the lease? Even if only 5.2 acres are owned, what is a reasonable sales price per acre at this time?


It is possible that you have more, but not very likely in that same section as when they lease, they are pretty careful to find everything.

The reasonable sales price depends upon many factors-your royalty, how many acres you have, potential for future wells, actual wells already producing, etc. “Willing and knowledgeable buyer and willing and knowledgeable seller under no compulsion to sell” agreeing on the terms is the reasonable price. A disinterested Petroleum Engineer can evaluate your minerals and give you a better idea.


Hi Grovelander. I’ve got minerals in McClain as well. Since I have found a large range in offers people will give to buy minerals, I am waiting to get as many offers as I can before making a decision. I think I am going to be reaching out to a couple mineral appraisers that work in Oklahoma as well. I am wondering if we could maybe pool together our resources to hire a mineral appraiser? Let me know if you think this would interest you. I am pretty new to the forum, so not sure if there is a way to send you a direct message with my contact info but I guess just let me know through this thread.


HI, WolfT. I considered hiring an appraiser, but since I have only about 5 areas in McClain, it didn’t seem cost effective. I have received a lot of interest from potential buyers in recent weeks. Offers have ranged from as low as $5500 per acre to $9,000 per acre for a 3/16ths royalty property. I always make one or more counteroffers and make sure that all expenses are allocated to the buyer.


Hi Grovelander. Meant to get back to you on this. Sorry for the delay. Thanks for the advice and I’ll keep that in mind. I ended up talking to a couple of mineral appraisers that I found just by searching the internet. There was a range of prices for getting an appraisal done, but one of them offered to value some minerals I have in one section for $2,500. I have about 20 acres in that section, so I figured that if that appraiser can help me negotiate for even just an extra $500 an acre, then it would have been money well spent. I have decided that I am not going to even accept the highest offers I receive, no matter what these companies tell me. I think even their highest offers seem to be under valued. But I have also decided that I am not going to make blind counter-offers without really knowing what is going on. My dad was a scientist (he was actually a geologist in the oil patch) and I think he would have appreciated his children approaching selling the minerals this way.


I had offers in 24 9N 4W for as much as $9000 I believe. That seems really low. I am thinking whoever “valued” that is thinking about tripling their money. I have gotten offers in 6N 2W for that much, and that area is a lot less valuable.


Hi Joe_S. Definitely echo that sentiment. They have to make there money somehow, and I think most offers, even the highest ones, are undervalued. I decided to go the route of hiring a mineral appraiser but it did take some searching to find one that I felt would be honest with me.


Hi Joe,

Your comment interested us- specific to 6N 2W. We have mineral rights in 6 6N 2W & other areas. We’ve received offers as well for 6N 2W as high as $9000. Your remark that this area is less valuable is what we’re actually wondering about. Would you help us better understand what it is that you know that helped you come to that conclusion? Thank you in advance. We’re relative newbies to all of this and continue to read and try to learn as much as we can from all of you on this forum.


Would you be willing to pass on your mineral appraiser’s name and number? Honesty and expertise are very important to us. Thank you. The comments on this site are very helpful to us!


I have a portion of an acre there at 6 6N 2W. You have to realize, everybody’s name and address are on those OCC things they mail out. There may be a couple companies that really do research and offer what they want to get it. Other companies can likely find out what the real companies offered, and offer whatever they want. I never got anything close to $9000 so I would think that is a pretty high offer.I am looking at one from October 5, 2018 for $1100 with 3/16 lease! A month later they offered 2100. One for 3750 in 29 7N 2W. Another one for 2100 in 28 7N 2W, then one for 4000 later. Offer for 6000 at 24 9N 4W. Then 7000 at 24 9N 4W a month later. I threw a bunch of offers away and I am not selling anything. All those are were in process of drilling or are going to be drilled. Once there is intent to drill, numbers can go up. Generally speaking , oil seems to be better further west in 4W . There is more NG going further east to 1W or even 1E. It a lot of speculation. I don’t think there are too many people that are making offers, that won’t make a lot more money than their offer, over time . JMHO.


I don’t get minerals appraised because I am not a seller. I am just going by offers that came in, in the past.


Hi Parentof4js. I am guessing that question was directed at me. So I searched online and ended up talking to about five different companies that do mineral appraisals. I narrowed my search down to two of them based on their knowledge of Oklahoma oil and gas properties, the fact that they were truly independent appraisers (not people interested in brokering my minerals or buying minerals) and their quoted price for doing the work. These were Petroleum Evaluations Group, and Gustavson and Associates. Gustavson and Associates was more expensive (over $5,000 for a report) and they seemed somewhat disinterested in me giving them work. I think they mostly work with corporations rather than mineral owners. That being said, they seemed very professional. Petroleum Evaluations Group had a much better price and seemed to be more familiar with Oklahoma and working with mineral owners. That being said, I wasn’t that impressed with their website (its pretty bare bones) and it took them a couple days to get back to me. Hope this helps!


Thank you so much! This is valuable info!