10N-11W is in Caddo County, not Canadian. I do not see any horizontal well in section 8 yet, but they are moving that direction with leasing.
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They basically desire to purchase your mineral at less than 10% of future value because the operator will drill more wells they hope a nice check you will take it. If this is your first property will production you get 3-4 offers from different people every month these people will purchase all the minerals they can get some unknowledgeable person to sell but if you did sell in some state you can carry them to court within two years and cancel the sell
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Make sure you tell your children who will receive the minerals when you die never sell the minerals
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Answered your question in your other post.
I am still new to this whole thing about owning mineral rights but have learned alot from this great community. Although I still have a lot to learn. The mineral rights I own are in 20-08N-10W. From the paperwork I received they’re drilling 2 horizontal wells. Is that correct? I have been receiving some buy and many lease offers over the last 2-3 months including Melbourne and Cotera who I believe are the end operators. I have received options with different cash bonuses all over the place and royalty interests ranging from 1/8 upto 1/4. Definitely going with the highest 1/4 royalty. I’m just not sure if $800 cash bonus per NMA for 1/4 royalty is low or a fair offer. What are others are being offered for this area??? Also, I believe there was a pooling hearing 12/22 but can’t seem to find any info on it and what was determined. Any hearing info and additional and addition ifno as to what happens next is appreciated. From what I’ve read, does a pooling order come next after the hearing? If so, how long does that take to be issued? Is that when the 20 day countdown starts to make a decision or be forced pooled? Should I wait for the order or should I sign a lease before then. I will definitely have the lease reviewed by a lawyer before signing anything to make sure all the necessary lease clauses are there. Thanks again for any advice!
See above, Forgot to mention they’re in Caddo County, Oklahoma.
Not sure what you meant by changing the NMA. You cannot change the NMA (net mineral acres), can only lease or pool what is actually owned.
The bonus amounts offered at pooling will be market competitive to what has been offered in the section of interest and the eight contiguous sections within the last year. What you quoted above may not pertain to this township and these sections.
Pretty sure mineral rights are just another asset, and as such are managed with varied strategies with different end goals. Robust leasing and drilling activity will almost always generate mineral buying activity, but the idea that all mineral buyers are somehow sneaking up on potential uninformed sellers is a bit frivolous in my experience! There will always be parties coming out of the woodwork hoping to acquire interests at a discount, however there have been and will be plenty of other reputable entities engaged in good faith fair market acquisition efforts. The narrative here is all too often the same, everyone buying knows something the rest doesn’t and they’re looking to take advantage of some s*cker. Believe me when I tell you, many many overpriced mineral acquisitions do NOT work out in favor of the buyer! Trends are trends, but in no case will everyone get “barn burner” wells drilled on them, and there are many variables to the entire scope of oil and gas industry, with numerous unknowns and pitfalls. I have direct knowledge or involvement historically in mineral transactions wherein sellers have reaped significant financial gain with very positive life outcomes depending upon their respective needs and goals. For anyone familiar with recent history, talk to some of the folks that received $20-30K for minerals in the SCOOP wherein multiple HZ wells were drilled that struggled to pay-out, and even decent wells would not pay the owner that kind of $$$ if they were to produce long term on attractive production declines involving multiple decades to hit those kind of revenue marks. Be wise and prudent of course, but consider remaining mindfully aware of both sides of the coin and avoid getting caught up in the gusher hype!@?
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Let the buyer beware
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