# Offer for purchase of mineral rights in 24-16-12
**URL:** https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538
**Category:** Blaine County, OK
**Created:** [August 23, 2016, 8:08pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538 "2016-08-23T20:08:32Z")
**Posts on this page:** 13
**Page:** 1
### Author:  [@Wells](https://www.mineralrightsforum.com/u/Wells)
#### Post date: [August 23, 2016, 8:08pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/1 "2016-08-23T20:08:32Z")
What offers have been received to purchase minerals in Section 24? I have a little over 2 acres that I am thinking about selling. Thanks for all assistance!
---
### Author:  [@R\_Taylor](https://www.mineralrightsforum.com/u/R_Taylor)
#### Post date: [August 23, 2016, 8:34pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/2 "2016-08-23T20:34:22Z")
Unless you are being offered big money for this I’d hold onto your minerals. Continental has pooled this section under CD 201600523 and it was approved by the OCC on 8/15/16. Continental’s success rate is high and most wells are making 800-2000 bopd. Assuming your 2 acres are leased at a 3/16ths royalty, they could potentially be worth a lot of money to you. Example calculation - 3/16 (Royalty rate) x 2/640 (unit size) = .00058594 Royalty. 1200 bopd (example oil/gas equivalency) x $48 (dollars a barrel) x 300 (days producing - working in down time) = $17,280,000 a year x .00058594 (your interest) = $10,125 (gross less 7% production tax). I wouldn’t sell for any less than $15,000/ac. if you absolutely want to sell. That’s about a 3 year payout using this example.
---
### Author:  [@Virginia\_Henley](https://www.mineralrightsforum.com/u/Virginia_Henley)
#### Post date: [August 23, 2016, 8:45pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/3 "2016-08-23T20:45:53Z")
There are several Section 24s in each county. Please identify your holding with a Section number, a Township number and a Range. Also, Townships and Ranges have directional indicators as well.
---
### Author:  [@Wells](https://www.mineralrightsforum.com/u/Wells)
#### Post date: [August 23, 2016, 8:52pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/4 "2016-08-23T20:52:29Z")
Blaine County - Section 24 - 16N - 12W
---
### Author:  [@R\_Taylor](https://www.mineralrightsforum.com/u/R_Taylor)
#### Post date: [August 23, 2016, 8:55pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/5 "2016-08-23T20:55:07Z")
Your original post’s heading included 24-16-12. My response was based on this section.
---
### Author:  [@Wells](https://www.mineralrightsforum.com/u/Wells)
#### Post date: [August 23, 2016, 9:04pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/6 "2016-08-23T21:04:38Z")
Thank you for your detailed response R Taylor. I appreciate you breaking down the math for me! We weren’t included in the pool for some reason. I believe it is because it is currently leased and producing. Would that affect the calculation any that you did before? I am new to this!
---
### Author:  [@Martin\_Diggs](https://www.mineralrightsforum.com/u/Martin_Diggs)
#### Post date: [August 24, 2016, 1:00am UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/7 "2016-08-24T01:00:40Z")
1200 bopd (example oil/gas equivalency)
Can you explain how you got this number? How does it account for the oil and gas mix and at what percentage?
---
### Author:  [@R\_Taylor](https://www.mineralrightsforum.com/u/R_Taylor)
#### Post date: [August 24, 2016, 1:59am UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/8 "2016-08-24T01:59:50Z")
I just used it as an example. To be technical, 1 barrel of oil is equivalent to 5,612 cubic feet of natural gas. As you probably know, most wells are producing 1,000 mcf to 6,200 mcf. You could take actual barrels of oil produced times current price and actual gas produced times mcf/mmbtu price times 300 to reach approximate gross dollar amount produced per year.
---
### Author:  [@R\_Taylor](https://www.mineralrightsforum.com/u/R_Taylor)
#### Post date: [August 24, 2016, 2:02am UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/9 "2016-08-24T02:02:39Z")
You’re welcome RDennis. Yes, I believe you are correct that you aren’t on the pooling due to being held as to all rights by your lease. I believe the pooling is only addressing those owners with depth clause on their lease and those pooled under the Manke well.
---
### Author:  [@Lance\_Price](https://www.mineralrightsforum.com/u/Lance_Price)
#### Post date: [August 24, 2016, 2:49pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/10 "2016-08-24T14:49:44Z")
R Taylor, I have 15.625 acres in Blaine Section 24-15N-13W. I am currently unleased. I have a lease offer of $3800 per NMA bonus and 25% royalty. I am also considering participating with some of the acres. Participation cost is roughly $11,000 an acre in the McKinley Well which is being pooled. Would you recommend participating with some of the acres or leasing all? Does your response also apply to this area?
---
### Author:  [@Tim\_West](https://www.mineralrightsforum.com/u/Tim_West)
#### Post date: [September 14, 2016, 7:54pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/11 "2016-09-14T19:54:50Z")
Lance, these are probably going to be Cimarex or Continental wells, and mostly gas. But, they have been pretty good producers. A lease bonus that high with 25% royalty is pretty dang good. They must think it will produce a good well. Beware added costs of participating.
---
### Author:  [@Bart\_davis](https://www.mineralrightsforum.com/u/Bart_davis)
#### Post date: [September 23, 2016, 4:41pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/13 "2016-09-23T16:41:53Z")
Lance- I’ve seen lease bonuses in your area bringing 4k-4500 with a 1/5th royalty.
---
### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 11:04pm UTC](https://www.mineralrightsforum.com/t/offer-for-purchase-of-mineral-rights-in-24-16-12/4538/14 "2018-08-14T23:04:21Z")