I have interests in Johnston Co. OK section 6, township 4 south, range 4 east. The current leaseholder is Kolibri Energy and in the past week I have gotten a few calls interested in purchasing my interests as well as a notice of an application by Kolibri to approve two new multiunit horizontal wells here. I’m just trying to figure out if it’s worth exploring these offers so checking to see if anyone has any information or insights about all this activity.
It is very common to have buyers make offers when Increased density or new multi-unit horizontal wells are either on your section or nearby. Offers generally start off low ball just to see who will bite (in my experience). The more calls, the more I ignore them as our family would rather have the revenue. Most offers tend to be for the current production at some multiple, but many buyers do not offer the value of the new wells as that value is how they intend to make a profit. Note that the new wells are only partially infilling the section. If you sold, you would be giving away the possibility of extra infill wells in the future.
I have a similar question regarding the sale of mineral rights. If you decide to sell, should you go through an auction process or just work with a trustworthy oil company? It would seem better to get multiple offers and be able to compare. But does doing that offset the cost of the auction sales commission?
Very helpful information, thank you!