# Offer to Purchase Our Mineral Rights
**URL:** https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875
**Category:** Dewey County, OK
**Created:** [October 13, 2014, 2:46am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875 "2014-10-13T02:46:03Z")
**Posts on this page:** 16
**Page:** 1
### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 2:46am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/1 "2014-10-13T02:46:03Z")
We have 440 acres of mineral rights in Dewey County. The acreage is in Section 22 (280 acres) and Section 27 (160 acres) of Township 17N Range 19W. Both locations have producing wells from which we have received royalties for years. We have received an offer to purchase these mineral rights: $2,000 per acre in Section 22 (3/16), and $1,333 per acre in Section 27. Is this a fair offer? Advice?
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### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 2:49am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/2 "2014-10-13T02:49:29Z")
Failed to mention that the mineral rights in Section 27 are 1/8.
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### Author:  [@Susan\_Coolen](https://www.mineralrightsforum.com/u/Susan_Coolen)
#### Post date: [October 13, 2014, 2:51am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/3 "2014-10-13T02:51:01Z")
I’m no expert but in my opinion, no. I don’t know how much you’re receiving annually but my theory is, I could lease my property just a few times and get that much… Just my two cents.
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### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 2:56am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/4 "2014-10-13T02:56:17Z")
Isn’t it true that so long as there are producing wells on the property they are no longer up for lease?
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### Author:  [@Susan\_Coolen](https://www.mineralrightsforum.com/u/Susan_Coolen)
#### Post date: [October 13, 2014, 3:29am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/5 "2014-10-13T03:29:28Z")
Yes, that’s true. I don’t know how much you’re receiving in royalties, but they would have to offer me significantly more than what I’m making annually to make it worth my while to give up a monthly income.
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### Author:  [@Linda\_Levesque](https://www.mineralrightsforum.com/u/Linda_Levesque)
#### Post date: [October 13, 2014, 7:06am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/6 "2014-10-13T07:06:02Z")
I sold a portion of my mineral rights in Section 25 about four years ago… got $3,600 per acre. Your offer sounds very low, especially since you’ve been receiving royalties for years. When I sold mine, I had not yet begun receiving royalty payments. KEEP your mineral rights; they’re too precious to let go of and once gone are gone for good.
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### Author:  [@Ron\_McKenzie](https://www.mineralrightsforum.com/u/Ron_McKenzie)
#### Post date: [October 13, 2014, 1:19pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/7 "2014-10-13T13:19:21Z")
They are trying to buy your interest for what others are getting to lease. Here is what they were ordered to pay in a pooling close by.
[http://imaging.occeweb.com/AP/Orders/occ5105107.pdf](http://imaging.occeweb.com/AP/Orders/occ5105107.pdf)
Here are some completion reports on two of the first horizontal wells drilled in Township 17 North, Range 19 West.
[http://imaging.occeweb.com/OG/Well%20Records/1DD0B68E.pdf](http://imaging.occeweb.com/OG/Well%20Records/1DD0B68E.pdf)
[http://imaging.occeweb.com/OG/Well%20Records/1DD051CB.pdf](http://imaging.occeweb.com/OG/Well%20Records/1DD051CB.pdf)
This last well from May 2012 to May of 2014 has done 32,129 BO and 421,167 MCF of gas.
It will take more than one well to drain 640 acres, and several new companies have started leasing in Township 17 North, Range 19 West. Continental for one.
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### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 1:36pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/8 "2014-10-13T13:36:42Z")
We are considering selling because I am planning to retire next year. The existing wells provide us a royalty presently of approximately $1,000 per month. They are waiting for my reply. In your opinion, what should be my counteroffer? Or is this like nailing jello to a tree?
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### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 1:39pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/9 "2014-10-13T13:39:48Z")
Thank you for the information!
I sold a portion of my mineral rights in Section 25 about four years ago… got $3,600 per acre. Your offer sounds very low, especially since you’ve been receiving royalties for years. When I sold mine, I had not yet begun receiving royalty payments. Keep your mineral rights; they’re too precious to let go of and once gone are gone for good.
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### Author:  [@Larry\_Trook](https://www.mineralrightsforum.com/u/Larry_Trook)
#### Post date: [October 13, 2014, 2:14pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/10 "2014-10-13T14:14:22Z")
Are your wells deep horizontal wells? If not, then you have a lot to gain in future drilling and production from horizontal drilling.
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### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 3:03pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/11 "2014-10-13T15:03:31Z")
The wells were drilled years ago, before horizontal drilling.
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### Author:  [@r\_w\_kennedy](https://www.mineralrightsforum.com/u/r_w_kennedy)
#### Post date: [October 13, 2014, 3:43pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/12 "2014-10-13T15:43:44Z")
Bear in mind also the capital gains tax, possibly 15% of what you receive. 280 X $2,000 = $560,000 + 160 X $1,333 = $213,280 total = $773,280 X 0.85 = after tax $657,288 would mean $115,992 in tax.
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### Author:  [@David\_Wallace](https://www.mineralrightsforum.com/u/David_Wallace)
#### Post date: [October 13, 2014, 5:40pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/13 "2014-10-13T17:40:46Z")
I have minerals in Sections 21, 22, 23, 27…but am not really up to speed on this play. I just got paid a week ago on a new horizontal well drilled by Lighthouse and have offers to lease from Superior (for Apache they said) and JMA…I am in the business and my sense is that it would be a bad time to sell i.e. conventional play getting run over by a horizontal play…I also am sure that $2000 is too low…if you need retirement there are other options do not sell without talking to an industry professional…I would be happy to help you once I understand better what is going on as I am trying to get up to speed on my own interests here…if you have your original lease check to see if there is a segregation of the deeper rights meaning maybe there are lease bonuses for deeper right coming your way in which case a terrible offer…also follow the shakeout going on in oil prices and equity prices of independents…
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### Author:  [@David\_Newton](https://www.mineralrightsforum.com/u/David_Newton)
#### Post date: [October 13, 2014, 5:52pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/14 "2014-10-13T17:52:22Z")
Thanks everyone for the great advice. I need to be well informed before making a decision on this. You’ve been very helpful.
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### Author:  [@Susan\_Coolen](https://www.mineralrightsforum.com/u/Susan_Coolen)
#### Post date: [October 13, 2014, 6:56pm UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/15 "2014-10-13T18:56:51Z")
I’m glad to see everyone is of the same mindset as me. LOL I just think you can always make more $ in leasing/royalties than you can selling. Plus who are you selling to? Better to keep things with the Little People (us) than to let big companies get all the $… just sayin… obviously there are folks here WAY more knowledgeable than I am. For that I’m thankful. Great advice!
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 12:12am UTC](https://www.mineralrightsforum.com/t/offer-to-purchase-our-mineral-rights/8875/16 "2018-08-15T00:12:39Z")