Anyone know about this section. I inherited it back in 1983
Keep you ears open. This section is next door to several horizontal wells that are pending or that just spud. The wells have a surface location in 5-10N-5W. They go north into section 29 next to you. Roan Resources is very active in the area in 29, 30, 31, 32 and more sections to the north.
You do not seem to have any producing wells, so that would make it likely for increasing leasing opportunities in the future.
Of this 160 acre plot. I own 40 acres mineral rights
I am currently under a lease that began 7/31/14 that went for 3 years and was renewed for an additional 2 years as stated in the lease. This renewal will [end on 7/31/19] that has paid $20,000 each lease For a total of $40,000 but no activity as to royalties
I have been solicited by numerous other companies over the years but am bound by this lease till that date.
I am waiting for a proposal to buy this fro Nickel River Royaltie
Any idea on what I should consider
Given the activity all around you and the potential for future wells, you may want to consider hanging onto it. The reason you are getting offers is because of that drilling.
If you have heirs, this could be an important factor to consider. In my experience, most of the offers I have received have been for about the value of one or perhaps two horizontal wells. If the potential for more wells exists in a reasonable time frame, then hanging on was a good option for me. I took the royalties from the first wells and invested them in other things and waited for the other wells. Since the section next to you already has multiple wells, that speaks fairly well for the potential for your section.
Any idea on what would be a fair price if I sell the 40 acres How much per acre
Fair price is what a “willing and informed buyer and a willing and informed seller” agree to. In this case, the buyer is usually much more informed.
Remember, that you do not have to see the whole 40 acres. You can split it up if you want to split your risk.
Have minerals in 17 T11N R5W and Roan is working in the courts to proceed with drilling. That is above your area. Martha is right , they are drilling all around you. Just leased in section 7 and got $5250 per acre lease. Jones drilled 1 well in section 6 another in T12 31 R5w
Awesome bonus. What was the royalty? And we’re there any “post production” clauses?
We have a 1/5 Royalties. We have a good contract with a exhibit B . 3 yr and no deductions etc. Have not heard any more about any drilling currently.
I used a company called Mineral Advocate to help with the purchase and contracts. They have a fee but you should still come out ahead. It help make sure we got the best deal. Sometimes contracts are tricky.