We are getting mineral buyout offers, one in particular, on our small pieces of land that seem quite good, but they have to be that good for a reason. We have a lease with 1 year remaining in Section 20 at 1/5, and are evidently tied into a lease going back many years in Section 17 at 1/8. I realize there is activity in the area, we are just trying to decide what to do. The buyout offer is in the neighborhood of $4000/mineral acre.
The reason you are getting offers is that you have a Mewbourne rig onsite in the upper NW corner of section 21 which has three permits to drill. One is going south into 20/29 called the COW HILLS 20/29 AP 1H into the CHEROKEE formation spud 7/29/25 which will hold sec 20, one into 17/8 called the UNRUH 17/8 PA 1H into the CHEROKEE formation spud 8/25/25 which will holdn17, and one into one into 16/9 OMMEN 16/9 MD 1H into the CHEROKEE (not yours).
These may not be the only wells drilled here. The play is developing. They usually drill the first well to hold the sections by production (HBP) and then will come back and drill more lined up like cigars.
We don’t sell our acreage when there is active drilling, but everyone has their own decision to make. Most offers are not for the potential value of the acreage as that is how they plan to make a profit. Our family likes to keep the profit.
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