Here we go again - I’ve been getting seeming crazy offers for mineral rights purchase on our Section 20-15N-20W. There hasn’t been anything productive happening on this little slab of land for years, if ever. What am I missing? I realize Mewbourne may be drilling horizontals in the area, but what are the chances this land ever produce?
You have a new multi section permit by Mewbourne, just filed 6/19/25. Likely to be infills after that. Pretty high chance of production. Have you already lease? Or did you get the pooling notice?
They’re about to drill a well. What kind of offers to purchase have you received?
We have 1 year left on a lease. We had an offer for $4500/acre for purchase, among the numerous offers we’ve received.
Pretty good offer to be honest. I’m in those wells by happenstance so fairly familiar. You might wait it out a bit but I think they will only potentially drill 2 Cherokee wells max there and who knows when they’ll drill the second so it’s not like there’s a ton of upside for infills beyond those 2, sounds like that’s factored in to the offer. Who offered you?
It’s Liberty Minerals.
Where is liberty minerals located?
Texas, west of Austin a bit it looks like.
I think the liberty minerals that offered you is based out of Edmond, OK. That is a good offer though and I would seriously consider it if it was me personally. How much acreage do you own?
$4,500 per acre subject to what royalty rate? So many of these offers in Oklahoma are “up to x $ per NMA IF you’re subject to a 1/4 Royalty Rate”. If you aren’t subject to a 1/4 royalty rate than the offer per NMA is usually drastically less. I wish Oklahoma would just talk Net Royalty Acre in evaluations like they do in Texas, it’s such an easier way to evaluate since it factors in the royalty rate.
Hello Shemp. 20-15-20 is going to produce the name of the well is Cow Hills 20/29 PA #1H the well was spud on 7/28/2025 two days ago it won’t be long now ! all the wells are good in the area well head is in sec 21 I think they are drilling 3 separate wells on that pad by doing this it reduces fracing time and cost
I generally tend to see a year from spud to first check. It takes about four-five months to drill and complete a multi-section well. Then another five months to get a Division Order. First checks are due 180 days from first sales.
The strategy for a new play like this is to drill the first one or two wells to hold the acreage by production and then come back to drill the infill wells later.
Most offers tend to start out low ball to see who will bite-so room for negotiation. They either offer a multiple of current production or a few years worth of new production. They intend to make a profit off of their purchases. Personally, our family would rather have the profit and invest the royalties in other instruments that would in turn provide more dividends. We want all the royalties from the first well and child infill wells in both the current horizon and any others later in life. These horizontal wells can last for decades, so something to consider.