# Offer of $16K per acre
**URL:** https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640
**Category:** General Mineral Rights Discussion
**Created:** [January 3, 2017, 1:18pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640 "2017-01-03T13:18:48Z")
**Posts on this page:** 19
**Page:** 1
### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 3, 2017, 1:18pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/1 "2017-01-03T13:18:48Z")
Can anyone tell me why someone should NOT accept an offer of $16K per acre to buy minerals?
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### Author:  [@Geoff](https://www.mineralrightsforum.com/u/Geoff)
#### Post date: [January 3, 2017, 2:36pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/2 "2017-01-03T14:36:54Z")
Depends on a lot of factors. Where they are, leased or unleased, are they producing, how many acres you have…all of these can help in answering your question. Hope this helps.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 3, 2017, 3:11pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/3 "2017-01-03T15:11:25Z")
Blaine County…we have the lease…they are having a spacing hearing this month…40 acres. Can you shed any more light? What kind of well would it have to be to be better than $16K per acre to sell? Already got $3,500/acre for the lease.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 3, 2017, 3:17pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/4 "2017-01-03T15:17:05Z")
Reason I ask is because we have a producing well on a 640 unit of which we own 40…the completion report said it was producing 1,123 barrels a day but we are only getting paid for like 200 barrels per day and the checks keep getting smaller each month. Only received 3 checks so far but a far cry from $16K per acre…am I missing something that could happen with the producing well that would make the payments larger? The math isn’t adding up on $4-5K per month vs $700K ish to sell? I know each well is a different animal but we thought our producing well was one of the best in Blaine County and the checks don’t bear that out…
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 3, 2017, 3:19pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/5 "2017-01-03T15:19:10Z")
The producing well we got the same amount $3,500/acre to lease…and the lease is 1/5 free of production costs.
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [January 3, 2017, 3:49pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/6 "2017-01-03T15:49:17Z")
[I wrote this before you revealed where your minerals are located.]
Somewhere is a broad target, but here’s one extreme example: Someone might not want to sell if the minerals contain a ROZ which might yield 19,000,000 barrels of oil per Section through CO2 flooding: [http://www.rrc.state.tx.us/media/20095/8a-87578-frl-pfd.pdf](http://www.rrc.state.tx.us/media/20095/8a-87578-frl-pfd.pdf)
1 acre/640 acre Section = 0.0015625 x 25% royalty = 0.00390625
0.00390625 x 19,000,000 = 7,421.875 x $50 barrel oil =
$371,093.75 per mineral acre owned!
Try to determine the total amount of hydrocarbons each mineral acre might ultimately produce: [http://seekingalpha.com/article/3970273-permian-basin-lower-spraberry-may-yield-three-benches](http://seekingalpha.com/article/3970273-permian-basin-lower-spraberry-may-yield-three-benches)
On the other hand, $16,000 per nma would be difficult to resist. If I were presented with such good fortune, I would consider selling half or more as a hedge against Tesla and others being more disruptive than projected.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 3, 2017, 4:00pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/7 "2017-01-03T16:00:14Z")
Thanks a lot! The minerals are in Blaine County, ok?
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [January 3, 2017, 4:17pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/8 "2017-01-03T16:17:35Z")
Look up the reported monthly production here: [http://webapps.rrc.state.tx.us/PDQ/generalReportAction.do](http://webapps.rrc.state.tx.us/PDQ/generalReportAction.do)
Horizontal wells have steep decline curves.
I believe if you signed the operator’s lease without an attorney or someone very knowledgeable leading you, your lease may allow for deductions even though it reads as if it does not.
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### Author:  [@Gary\_L\_Hutchinson](https://www.mineralrightsforum.com/u/Gary_L_Hutchinson)
#### Post date: [January 3, 2017, 6:35pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/9 "2017-01-03T18:35:27Z")
Burt,
If you are happy with the amount of cash you will receive, that is the most important thing. Its personal and up to you. After that, and the largest risk you have in a transaction is the guarantee that you will receive what you expect when you expect. If you haven’t done this before get some help. MRF is full of posts from folks who accepted deals only to find out they had committed to a transfer rather than a sale agreement where the buyer can verify title.
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### Author:  [@Robert\_V\_Gill](https://www.mineralrightsforum.com/u/Robert_V_Gill)
#### Post date: [January 3, 2017, 9:25pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/10 "2017-01-03T21:25:06Z")
My two cents: Minerals in the ground are wealth. The government has increased the national debt to such an extent that a massive inflation is probably unavoidable. The value of minerals produced will rise as inflation increases. Cash in the bank will become less valuable. The governments of this world can print currency forever, but they cannot print minerals or jars of peanut butter.
Cash in the bank is taxable, and it could be used to bail out your financial institutions. I would be leery of putting my wealth into currency.
Just my thoughts on the issue; others may disagree.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 4, 2017, 1:39am UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/11 "2017-01-04T01:39:27Z")
Thanks for the info Gary!
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [January 4, 2017, 2:07am UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/12 "2017-01-04T02:07:16Z")
I generally agree up to the point of possible demand destruction due to electric cars, solar and fusion energy… whatever.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 4, 2017, 2:21am UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/13 "2017-01-04T02:21:37Z")
This info is very helpful. In the County discussion I was told one Section has been producing 12-30 wells in some parts of Blaine County so that would certainly change a guy’s thinking.
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [January 4, 2017, 3:46am UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/14 "2017-01-04T03:46:51Z")
Did you open the second link I shared? See well spacing.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 4, 2017, 11:17am UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/15 "2017-01-04T11:17:36Z")
I did but was looking at what ROZ meant in the Permian Basin and didn’t notice the spacing… it appears the one producing well that was completed last March could just be the beginning if I am reading what everyone is saying correctly?
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [January 4, 2017, 3:38pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/16 "2017-01-04T15:38:58Z")
You will probably be getting other offers. Suggest you do a lot more research on what is going on with your minerals.
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### Author:  [@Burt\_Rieck](https://www.mineralrightsforum.com/u/Burt_Rieck)
#### Post date: [January 4, 2017, 3:48pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/17 "2017-01-04T15:48:21Z")
Got one yesterday for the producing well… but I’m starting to see the light. The well is named Ruth Ann 1h-32… which means there can be 2h-32 and on and on… is that a correct way of thinking?
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [January 4, 2017, 4:43pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/18 "2017-01-04T16:43:07Z")
The Texas Railroad Commission provides an online interactive map which shows producing and permitted wells. I do not know if Oklahoma offers a similar service. If not, you might want to contact a map company or perhaps investigate temporarily subscribing to a service like [http://info.drillinginfo.com/subscriptions/](http://info.drillinginfo.com/subscriptions/) to see if you can get more details.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 10:41pm UTC](https://www.mineralrightsforum.com/t/offer-of-16k-per-acre/3640/19 "2018-08-14T22:41:33Z")