My mom owns acreage in 20N and 21N of 5W in Garfield, all of her tracts have new regulatory and are held at 3/16, 3-20N-5W, 7-20N-5W, 25-21N-5W, and 31-21N-5W, she’s getting older and looking to possibly sell her interest. We have had some offers on them, in which I considered them very low considering the new regulatory and drilling. I was curious if anyone else was receiving offers to sell their minerals in these Township/Range, thanks.
What are the new regulatory and drilling requirements you mention?
The reason that she is getting offers is that there are increased density cases before the OCC. Sec 31-21N-5W has an additional well requested. They requested one well, but the exhibits indicate a possible four more wells.
I suspect the same is about to happen for 25-21N-5W. The same company SK Nemaha took over operatorship from Longfellow (same as 31). SK Innovation acquired Longfellow in March of 2018.
I see the same takeover of position for 7-20N-5W, nothing on 3 yet.
In my experience offers to buy come from folks that want a lowball entry into a new bit of activity, so consider whether it is wise to sell at whatever that price is. They are going to make a profit. So if thinking about selling, ask for a lot more. Also seriously consider holding on.
Look up Longfellow’s investor presentations and you will get a fell for what they had going on in their play. Very common for the first company in to hold the sections by one well and then sell to a new company that is going to do the development since proof of concept has been proved. I have acreage just south of you in 19N-5W and they are drilling it out with quite a few wells. I would encourage you to hang on… unless you have a pressing need to sell.
When I get offers for my minerals I tell them that my Great grandfather, Grandfather,Dad and myself have held on to our minerals and now it is finally paying off.I have minerals in 4 sections in Garfield County with 2 active wells so far, and plans for 2 more this year.I have received offers of $4000 and $5000 an acre so far, but my answer is always the same:Once you sell them, they are gone!I’m passing them on to my children and grandkids! Bob Hunter
I agree. Minerals that my grandfather had written off as “worthless” for income tax purposes 70 years ago were hung onto with the directions “Do not sell”. The revenues from those small tracts of land with new drilling have now put at least 14 members of our family through college and grad school. We hang on to ours!
What a great legacy!
Do you remember who made this offer? My moms offer was a measly $172/acre and I advised her right away not to sell and that was a very shady offer.