A company has offered us $7000 per acre to purchase our mineral rights on 120 acres in 5-12N-14W just north of Weatherford. We leased that last fall for 2 years at 3/16. As far as we know there isn’t any exploration going on anywhere close, looks like about 6 miles east and 6 miles north is the closest I can find. I’m wondering why they would offer that much on something that isn’t producing or even being explored (as far as I know). We expect holding to be much more profitable than selling so that’s what we’re inclined to do. I’ve been a member here for a while and this is my first post.
Welcome to the forum.
There is a relatively new horizontal Cherokee play developing in the area. OCC cases are creeping into 12N-14W. Very active leasing all around you.
I doubt that you have 120 acres. If you are looking at the lease document, it states the gross acreage of the parcel. Due to fractionation over the generations, what started out as 120 acres is probably a much lower net acreage. Holding in an active area usually turns out to benefit the holder.
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$7,000 an acre isn’t a casual speculative offer. Buyers don’t put that kind of money at risk unless they believe there’s a strong likelihood of near-term production or proven value in that acreage. I’d be asking what they know that you don’t before selling
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Thank you for your reply! I always enjoy the expertise and wisdomwith which you respond on here
Yes, we collectively have 120 acres. (we have a fractional ownership, on over 2000 acres around the state, which yes has been diluted over the last three or four generations. Almost none are producing anymore. )
We sold this land two years ago, and retained the mineral rights. That’s why, for them to offer $840,000 for the mineral rights on a measly 120 acres, Well, I only know what I’ve learned here the last two years, but that seems pretty unheard of for something that hasn’t been developed and as far as weknow, there’s no known exploration going around within a few miles. We are thinking, and it’s been alluded to, that the the company at least from us has a good reputation for being successful. The company that made the offer hasn’t responded to my counter offer, which was phrased in such a way as to not be a contractual obligation.
I tried. They are silent.
That’s when I go to an AI program. Either ChatGPT or even the Google AI and ask very straightforward question such as “Im a mineral owner in Blah blah blah. I received an offer and am interested to know if there is any information about future drilling in my area” the AI has been extremely helpful in helping me find information and even providing step by stem method of instructions on how to get that information. Sometimes, I’ll even screenshot the page I’m on, paste it into the conversation and the AI will tell me where to click from there.
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Validus is also putting several 1280 acre units together just to the north of you.
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You can always sell 1/2 when the offers are good and retain the other 1/2 to see where it goes
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That is a great price for your mineral rights. There has not been any regulatory filed in section 5 or within the 9-spot, surrounding sections, in over five years.
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Yes, 120 acres on 2000 gross acres is reasonable.