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