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.
What's your legal where the acreage is not producing? That price is even lower than the normal leasing bonus for McClain. Your county is a very hot county right now. It's located within the Scoop & Stack play. Personally I wouldn't sell and definitely not to that guy.
It depends on where it is located, i.e. Section Township and Range but that offer seems closer to a lease rate than a purchase offer. Some more experienced folks on this site will be able to provide you with better information. There are a lot of knowledgeable people on this site like Stephen Weeks, M Barnes and many others. Go back and read through the comments and you might get lucky and find something near your area. There are about 115 pages of them. My advice would be to study well and take it slow. You can also search on the Oklahoma Corporation Commission website. Oil and gas databases. Hope this helps.
I'm a 32+ year landman as well and I don't mind helping you. I just don't get on these sites a lot so if you need information or help you can just message me. I manage and lease for over 130 different funds with anywhere from 100-400 mineral owners each so I am very knowledgeable of areas around the United States.
Don't sell for $500. IF he is buying for $500, he probably has them already leased for $500!! There are all kinds of slick willies out there looking to help you. Be careful.
In Township 8 North - Range 3 West they are "leasing" at $500/ac right now. He's trying to buy your minerals at leasing rates.
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.
I get offers all the time in McClain county in different locations. I have never had an offer that low to buy any of them.....Even if you leased them for $200-250 an acre for 3 years I think you are way ahead. I am not sure what the lease rate is at that location right off hand. If they drilled a well on that and hit anything decent at all you,would make so much money that buy offer would look like peanuts. Those minerals would be close to the "The Scoop". The scoop and the stack are oil and gas formations that are some of the hottest developing plays in Oklahoma and the United States right now.
Have you been offered to lease mineral in your area? in sect. 7? if so how much. We have Section 07-05N-01W
We've been offered $3,500 and $4,000 an acre to sell in 16-8N-4W (which is producing), but have seen $1,000 and $1,500 for areas that haven't started yet.
Just so you have a reference, I was just offered $2300 per in 6-6N-3W and it's already leased at $1000 per.
I can look up your ownership to see if all your minerals are leased for reference. That offer is way too low and if your minerals are open it would be worth more. What is your ownership name under? Friend me to talk.
I was also just offered yesterday 5000 to 8000 per acre in sec-2-6N-4W to sell my rights.
I was also just offered $5000-$8000 per acre to sell in Section 26-9N-4W and Section 14. Something must be going on in this area. I am not sure what to do yet. Any advice?
Me too, S20 9N 4W.
I have minerals in section 27...did they drill a horizontal well in 34? Any idea if it was a good well?
If they are offering that type of money they believe its a safe bet they might get 3 or 4X that in production.
I have mineral rights in McClain County that I leased. I had been inundated with offers to BUY to "take it off my hands"...I do have someone who is very knowledgable in oil and gas, and he advised me to NEVER SELL YOUR MINERAL RIGHTS! So....I didn't. I know that some folks out there are getting offers for CASH right now and it does sound tempting, but ask yourself "why would they be offering so much money?" It's because they might get 3 or 4x that in production, as stated by Joe S. Just hang on to it and lease your property. Just my 2 cents.