Received Purchase Offer, Mid-Fitts

Oklahoma Mineral Rights Pontotoc County, OK
1

I’ve received a purchase offer for our several holdings in this township. Citation is offering about 2-3 times our annual royalties to purchase the rights outright. I don’t need a net present worth calculation to know I don’t want to accept this offer, but it raises the question of whether they know something interesting that I/we should know. Is anyone aware of anything special about to happen here? It has long seemed (to me) stable and unlikely to change either for better or for worse. Our holdings are in Sections 20, 29 and 32.

Rudy

2

If you will add the Township and Range that your sections are located in Pontotoc County, then someone will be able to help you. There are numerous sections 20, 29, and 32 in Pontotoc County.

3

I’ve wondered why this happens so often in this forum. In this case, at least, it’s a bug in the forum software. It allowed me to enter the subject line, “Received Purchase Offer, Mid-Fitts, Pontotoc 2N-7E” and then shortened it, posting the incomplete message. I wonder how many of the other, similar situations I see here result from this problem.

Anyway, the township is Pontotoc 2N-7E.

4

It might be a character limit on the length of the title.

Anyway… Are you getting the OCC orders for those sections? I see new permits and quite a few cases over the last 24 months. Citation might be trying to consolidate their holdings and deal with fewer mineral owners. Looks like things are heating up there.

5

I assume it IS a character limit on the title, but the limit, if it exists, should be imposed at data-entry time. (Sorry, I’m a retired software ergonomist and designer. User interfaces are my thing.)

I do assume they’re trying to consolidate their holdings, but I don’t recall recent OCC orders. Would I get those if our interest is held by production? I assume I would. Maybe I just filed them without thinking much about them. I’ll check.

6

I see a bunch of new Citation cases clustered over in the SE corner of the township. No orders yet.

7

Our holdings are S2SW4 Sec 10, SE4SE4 Sec 29, and N2NE4NE4 Sec 32.

8

10 OR 20? 10 is not in the Mid-Fitts unit. You said 20 in the earlier post (which is in the unit). The new permits that I see are mostly in 30 (east half) and 29 (NW4). If you are part of the Unitization documents descriptions, then you usually benefit from all new wells in the unit because the decimal ownership changes to cover all the acres of the whole unit. Looks like eight wells are either new or having something done to them.

9

Thanks, Martha. That helps. And you’re right, of course, it’s section 20. And yes, I have lots of documentation (mostly old) about Mid-Fitts unitization.

Looks as if the new activity isn’t too far away, so I’ll start crossing my fingers more often. :slight_smile:

Rudy

1 Like
10

I received multiple offers to purchase my mineral interests in leased properties and the offers are always in the 5 to 7 times annual royalties for the last year or average of the last 3 years.

11

Well, I would at least think about an offer in that range, though I doubt I would wind up accepting it. But 2-1/2 times current annual royalties? Not likely. Still makes me wonder what’s going on, though.