Hello,
My father-in-law has received an offer to purchase 39.8 net mineral acres in Canadian County, 9-10N-06W for 220,000.00. Is this a good deal, and why would he be receiving this offer at this time?
Some has sold for $10.5k.
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He is getting the offer because Camino has just filed for three horizontal wells in section 9 and 16. As to whether it is a “good deal”, depends upon whose side of the fence. Roughly $5527 per net acre.
First offers are usually low to see who will bite and are usually for the known production for a certain number of years discounted for the time value of money. The first Braum Family well in 9 had a gas Estimated Ultimate Recoverable of 4.2 BCF and about 135,000 bbls of oil. About half is left. Braum 9-16 3XH and 10.8 BCF and 72,000 bbls of oil. About half is left. Those wells are shared with other sections. The new wells will probably be similar. Might be room for more infill wells down the line.
Buyers rarely mention that new wells are about to be drilled as they plan to make a profit off of their purchases. If estate planning is part of the answer, then these new wells are likely to last for decades and can be useful to the next generation. If funds are needed now, then ask for more. He can sell all, sell some and keep some or keep them all.
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