We have received numerous offers to purchase mineral rights in Grady County section 34 T10N R6W, and section 3 T9N R6W. We have less than 2 net acres in section 3, but have 10 acres in section 34. This is owned by my parents, and they have expressed an interest in selling some or all of it. Common sources are the Mississippian and Woodford. Not sure of the value. Can someone give some guidance on this? Thanks
If you would like to send me a friend request. I can send you some information.
Much of the fair market value depends on whether you are leased, force pooled, operator, or drilled and producing. Also, if you are serious about selling find out how many acres you actually own. Offerers figures are sometimes inaccurate. Also the transaction cost will kill you on 2 acres but if you get together, and bundle, you will get a premium on a lump sum take it or leave it deal.
It is short sighted to negotiate on a per acre basis then take the buyers word for the number of acres.
Gary L Hutchinson
For a purchase I would be thinking 15k to 20k per acre.. Leases seem to be going for 5k to 7k even more if large track. Remember ; however, they probably won't buy unless they can make a GREAT profile off you/ your land. So, it's always better to lease -- go for 4-6k nma 3yr lease - no extension no warranty no deductions!!!!-- and keep the minerals in your family.-- for your kids someday.
Still have a lot of information to obtain and verify before we take any action. We still do not have a copy of leases and do not know yet if they were forced pooled. I have the operator, drilled, and producing information. Would love to verify the net acres (on the small tracts owned by my father, > 2 acres), and assume that can only be done via abstract. If you have any more advice or if I'm wrong on anything let me know. I would prefer to keep the mineral rights, but my Dad is set on selling his small amount. Thanks again for your help.
Thanks for the reply and information Bud.
Forgive my ignorance Gary, but if my parents mineral rights have been force pooled, would there still be a lease in existence that I can get a copy of from Linn Energy?
There is no lease if you are force pooled, but you can get a copy of the force pool order if you know the year it was pooled. It is available on the OCC website for free. If you need help finding it, let me know.