Offer to purchase our mineral rights- need advice

We own the mineral rights on 240 acres in McClain county. Oil was found at 2 locations: Smedley and Henson Haven. We receive royalties from this. A landman is asking to buy the mineral rights for the acreage where the oil is not yet found. They are offering $500 an acre. How do we know this is a fair price? How do we find out what a fair price is? What suggestions / advice would you have for us? What questions should we be asking? Thank you for your time and help.

Hi there, a few years ago, we were offered about 3x that per acre for 3/4 minerals, retaining 1/4. We didn’t take the deal though.
Hope that helps.

To answer your questions: In section 7 township 6N-2W we own the mineral rights on 220 acres.

Is the landman’s offer of $500 ac to purchase (NOT LEASE) in THIS area reasonable? What are mineral right’s going for in this section and township of McClain County, Okla?

What does "Scoop & Stack Play"
mean?

Thank you to all who have contributed so far. Your insights are helpful.

Don't be too sure that the "the oil is not yet found" Some oil generating formations have been known for decades. It is just that the technology to get the oil out profitably has recently been proven. Beware of "buyers" using old business rhetoric to obtain known reserves at old business prices. If you get some good technically based advise you can capture the huge profits the "buyers" will make at low prices. With that much acreage, you have many options. Holding an auction is the least economically attractive, in my experienced opinion.

Gary L Hutchinson

Minerals Managment

Here’s a theory re the offer by a landman to purchase our mineral rights on our unleased property: is it possible that oil has already been discovered nearby in the acreage adjacent to the acreage we own mineral rights on and the oils ruling company is trying to buy mineral rights for cheap based on this insider information?

Accept my friendship invitation. I own minerals in this area.

The only way you can kinda find relatively close idea of values is to search for mineral deeds in the same general area and then figure out the doc stamps paid. There was a mineral purchase in 31-6-2 earlier in the year for about 1200/acre.

But, as my fellow forum friends will quickly point out, its a little like asking what a house should cost. It depends on location.

If you're really interested in selling, or at least selling at the right price, a call to several of the mineral buyers that advertise through naro or on this site will give you a general idea.

Alternatively, many of the professional landmen or lawyers know who would likely pay the highest dollar.

STACK = Sooner Trend, Andarko basin, Canadian and Kingfisher counties.

SCOOP = South Central Oklahoma Oil Province

I do not know why, but there it is.

In my lowly opinion $500 to purchase is not reasonable.