My brother, niece and I have been receiving offers to buy or lease our mineral rights in 16-18N-9W. Production was stopped in our minerals in January of 2016. Now there seems to be quite a bit of interest from several companies in leasing or buying the minerals. Could anyone give me a ballpark figure of what leases, and I guess purchasing, in this area are at this time?
Thanks for any information.
Hi Mary Louise,
In terms of ballpark #'s, I've seen a few publications that show a lease bonus range from around $50 - $6000/NMA with an average of around $2500/acre (royalty rate ranging from 12.5 - 18.75%). The lease bonus will typically decrease as royalty goes up (e.g. you may get a lease offer of $1500 for 3/16 royalty or $1000 for 1/5 royalty).
A minimum ballpark figure for valuation of minerals would be on the order of 3-4 times the lease bonus in terms of a rough price per net mineral acre. If you are in a good area then this will grossly undervalue your minerals (likewise if you are in a marginal area it might be over valuing them). To get a true feel for what their worth if you do decide you want to sell, I would recommend getting an independent expert to appraise them. Mineral value can be determined through several approaches including an engineering analysis that takes into account the value of both producing and non-producing acreage.
If you would like to keep tabs on activity near your mineral rights, I would recommend doing a search via the legal description of your tract (e.g. section township range like you listed) via the Oklahoma Corporation Commission website Oil and Gas division. From there scroll down to Oil and Gas Data Mining. You can choose to view data on a map (GIS Data Mining) or perform a text based search. In either, click on "Switch to Advanced Filter" to search by Section, Township, Range. There you can view production and well documents. FYI - the OCC website production data availability can be spotty so if it doesn't show anything you can go to the Oklahoma Tax Commission Website and perform a search by legal description there and if there is production it should be listed.
This should help give you a feel for the level of activity and trends in the area. In general, Kingfisher County is a pretty hot area so as long as the macro environment (oil price, economy) stays stable.
Best of luck!
Matt Sands
Thank you so much for the information! I will certainly do those searches to see what I can find. You have been very helpful!
I owned a small working interest in sec 17-19N-8W- Chesapeake drilled the Richard 1-17- I went non consent- so is this interest any good- people are calling- Kingfisher county