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Hi, I have minerals in Section 12-3S-4W and had a recent offer to sell for $2200. Does anyone know if this is a good deal? Was my Dad's family farm and the land was sold in the 50's. Appreciate any advice.

I would advise not to sell. How many acres do you have? You are in the middle of a leasing fairway for the SCOOP that Continental is leasing in and beginning to develop. If you do sell that price is too low. If you really need cash badly also consider selling just some of your acres but hanging on to some. Geology is different section to section...but you are in the middle of the SCOOP fairway and could have a rich resource.

Hi Bob, Thanks for the advice. I have 50 net undivided mineral acres in the NW corner. My sister has the same. I don't need cash that bad, but thinking of retiring in the next 5 or 6 years. All of the minerals are leased, and had two recent offers to sell. This was a failed homestead from the land rush. My Dad sold the surface in 1962. I was born in Chickasha, but live in Charleston, SC now. My Mom's family are all Harts. My uncle JR lived in Duncan all his life, and other relatives are nearby, mostly in Chickasha.

Do you have those minerals leased out or is it Held by Production? If leased who did you lease to? If you leased to one of the big companies that is going for the deeper Woodford stuff I'd say you will probably get several more offers. We have our royalty in 2n,4w and have been receiving offers about every other day to purchase. We're leased to Newfield and Continental. Offers started as low as $1600. an acre (which is a joke now with many people LEASING for that much) and now have been offered as much as $12,000 an acre for the Section where Newfield is now drilling 6 wells. Everyone's cituation is different as to whether they need to sell but we have chosen not to sell for now. If we sold we'd have to pay much of it in for income taxes and even though we are in our sixties we are hoping to live long enough to reap more than the offering price to sell. If not our kids will enjoy the extra income. If you do need to sell I'd say ask for more~much more~you never know you might just get it! Or like Bob advised you might just sell part and keep part depending on how much you own. Best Wishes in whatever you decide! can dig around in here and find a presentation Continental Resources gave to shareholders last fall.

THey claim there are between 45 and 70 million barrels of oil equivalent in place per section in this area. In the Bakken they are able to recover 5% I believe, some places they can recover more. IF you take the lowest number of $45 mil x 5% that translates to 2.25 million bbl oil equiv. recoverable, or 3,500 bbl per acre. Now oil equivalent includes gas and condensate (liquids that condense from gas when its temp and pressure drop)..they sell for less...but still it s a big resource that depending on your royalty could mean $30-50k per acre someday in royalties.

Of course there is risk that there is some kind of geological anomaly in your section that could prevent development, but I imagine that risk is fairly low. You are right in the middle of the section that they are focusing in to start developing. When were your leases done, how long are they and what royalty rate?

If you have 5-6 years until retirement...sit tight. You could have a nice addition to your retirement.

Joseph, as Linda advised-everyone's situation is different, but most people in this area who see what is happening in the SCOOP elect not to sell. I don't think that was a very good offer they made you, but of course they're in the business to hit a home run on acquisitions. Just as a comparison, several months ago I received an offer from Citation for minerals in Stephens sec 1 1S 4W (which they hold by production, so they know alot more than I do about what's there) for $12000 per acre. It could be several years but I believe you would receive alot more money in the long haul if you hang on to them (or as Bob said maybe sell a portion if you really need cash and hang on to the rest for a nice retirement supplement.) Sounds like with 50 acres it could be alot sweeter than just supplement.

Thanks to all so much for the advice - I am at work but when I get get home, I'll post the lease information. Again, really appreciate the advice. It is clear I won't be selling soon.

Hi - Turns out I have 60 net acres in the NW Quarter of Section 12 - 3S - 4W. 50 acres are leased to Jackfork at 3/16 (lease extension ending 1-16) and 10 acres leased to RD Williams at 3/16 that with extensions won't end until 2022. I got $500 per acre for the 10 and $150 per acre for the 50 at the beginning of 2010. Look forward to getting to know you all.

Some good reading about the SCOOP.

Thanks Linda - interesting stuff

Joseph...Jackford leases for Continental (one of the bigger players in the SCOOP). Sounds like they caught you like they did us before the news of the SCOOP was leaked. They leased yours CHEAP and got an extention so they could take their time to drill. We leased our only for $650. an acre with no extention but some are leasing now for much more and getting more percentage. We didn't have an option for 1/5 or 1/4 but some are also getting that much. But if your extention is up in Jan. I have a feeling they will be drilling on you before they have to release again. I believe I'd hang tight to that royalty until I could see what they have in mind. Where exactly is your royalty? Is it down around Loco? Lot's going on there they tell me.

I don't know where it is Linda, My dad had a tragic history and never even took me there. I think it is near Loco - I know he went to Fox High School and joined the army to fight in WWII at age 17 because his parents couldn't feed him. Both my grandparents were dead when I was born in 1952. I have looked at maps but can't figure out how to find it.

Small world! My dad also went to Fox but quit in the eight grade to help make a living for the family. He was then drafted and went to WWII and after getting out went back and got his GED. There were eight kids in their family not counting the ones they lost. They were raised very, very poor. Mom said her family was poor but they didn't realize it because every one was poor then. But she said dad's family ate things they had never even thought about eating because they didn't have enough other stuff to eat. Dad would have his check from the service sent to Grandpa to help support the family. I was born in 1948, the first of four kids for my parents. Dad was 28 when I was born (ten yrs. older than mom) and he was worried he might not live to see his kids grown but he is nearly 94 now and he has seen his kids, grandkids and several of his greatgrands grown. He was a success in the well service business because of years of hard work but is kicking himself because after working in the oil business for years he didn't end up with any royalty. BUT, he's nearing the end of this life (mom died in 1994) and he does have the reservations for his heavenly home made so he'll be living the good life royalty or no royalty.

All that area has always been good oilfield country. I think it will be GOOD for ya in the near future!

Joseph..If your mom's family are Harts are you related to Thomas Hart? He is an attorney that practiced here in Lindsay for a long time. I've been told that he is an attorney that knows a lot about the oil and gas business. I was told today that he is back in town. Think he went to another state for a while. I'm not saying you need an attorney because I don't think that. I was just wondering if he is related.

Bless your dad - sounds like he has had a wonderful life. My sister Kay is your age and was born at Grady Memorial. She lives in upstate SC. My grandfather Gentry drank and my grandmother died at an early age. My dad's brother was killed in a tragic TV antenna accident when young. My dad never really talked about his family but said they ate squirrels if they were lucky. The farm must have had poor soil because he said they couldn't grow any food. Cool that even though they were so poor they held on to these minerals so many years and passed them down. We moved to Pampa, TX when I was a few months old and only lived in OK for a year or so when I was 6. Thomas Hart sounds familiar, but can't think why. My grandfather Hart had 8 or 9 siblings so make sense that there are Harts around there. Maybe a Gentry or two as well.

There was a really nice guy named Gentry that was a Baptist preacher here for several years but I can't think of his first name at the moment. Seems like it might have been "Bill".

from Jct hwy 53 and hwy 89 it should be a mile east on 53 on the north side of the road. Hwy 53 cuts section 12 in half. We own surface in the area and i still hear it called "The Gentry Place"!

Joseph C Gentry said:

I don't know where it is Linda, My dad had a tragic history and never even took me there. I think it is near Loco - I know he went to Fox High School and joined the army to fight in WWII at age 17 because his parents couldn't feed him. Both my grandparents were dead when I was born in 1952. I have looked at maps but can't figure out how to find it.

Thanks Ryan, I really appreciate your post. My dad and his brother's kids sold the surface 50 years ago. For some reason they owned some land (I guess from what you said) across the road. My sister and I still own 20 acres of minerals there. Is actually 15/32 of the Southeast quarter of the Southwest quarter. Maybe there was more than one Gentry homestead around there. There are some Gentry kin in upstate SC I met years ago, and turns out both the Gentrys and Harts left SC to get free land in the OK Territories. My family ended up back in SC in the late sixties when my dad took a job in Anderson, SC.

Howdy Neighbor, I have been reading with great interest all the activity and resulting whooping and hollering by those in the North country....2N-4W. So it's nice to hear from an almost next door acreage is in 13-3S-4W. I received an offer for my royalties of $1000 per acre early this Spring which was raised to $1500 within a few days. I have read with interest the discussions of what is a "good" offer and one way to look at it is, what could a typical frac well produce in royalties over a period of time. If you look at the CR slide presentation, they say that the typical frac well in the SCOOP has an initial production of 200 BOD. So assuming $90 oil and 3/16 interest, that comes out to about $2000 per year per acre. Of course you can add a little for gas production and hope that they may drill more than 1 well per section but from that, you have to also consider the time value of money and it may be years before the checks start coming in.

Interestingly, the land man that made the offer to me said, off the record, that his offer is about what he hopes to make and recover the first year. So your offer seems about in-line with the offers in the far south.....3S. As development comes south, those offers should go up. Note however, that the typical CR frac well production falls off rather rapidly, nearly 50% the second year and continues to decline rather rapidly. It's a personal decision on whether to sell....if you don't need the money it's probably going to be a good ride to stick it out as so many are advising. I certainly don't think you will lose anything by watching it for at least a few years. Good luck neighbor. Oh, my mother and her sisters, the Eisslers, grew up in Commanche the early part of the last century.

Hi Wade, Thanks for the information. Sounds like good advice. Nice to meet a good neighbor. I have been living away from OK for 54 years and still think of it as home. All the folks on the forum have been real kind to help an uninformed novice like me. Thanks again.