Section 28 T4N R4W

We have been contacted to sell our rights in the above location. We have no idea if the offer is reasonable. How would we go about determining what it is worth. What do we do to protect ourselves. Any one know of activity in this area. Any help / direction would be appreciated.

Without knowing what your offer is we can't know if it's reasonable or not but I think the general view about selling in the SCOOP area is don't sell unless you really need the money. I don't know of any drilling in this section right now and it's the section that I live in but I might not know about it until after it starts. I do know there is drilling in the sections all around us. No one really can tell you if you should sell or not because it all depends on if the price of oil/gas etc. goes up or down in the next few years and there is no sure way for anyone to know that. It also depends if you have it leased out also or HBP (held by production) and at what percentage. If you feel like you have to sell you probably don't need to take the first offer you get as they nearly always offer you a low ball offer because of course they are wanting to make money off of it themselves. If you wish to disclose the amount of the offer there are people on here that can tell you if they think it's a fair offer and probably people on here that would like to offer you a higher one. It never hurts to have more than one person bidding on it. We kept our mineral rights when we got some very good offers over the last 5 years and haven't regretted it (we have none in this section, township and range) but you just have to make that choice for yourself. Best Wishes!

The price offered is $4,000 per net mineral rights acre. I don't plan to take that amount but wondered what I should hold out for.

You're likely at a 1/8 royalty so that impacts value, but $4,000/acre isn't close to enough.

I agree with Linda. Most first offers are usually low to final offers. There seem to be several active gas wells still in the section. Horizontal drilling is coming into the township just to the north of you. In the old days with strictly vertical wells, the general rule of thumb for an offer was four years annual production royalties for oil and seven years of royalties for gas. New horizontal drilling has thrown that out the window due to the increased volumes and royalties.

You have to ask yourself, "If someone offers me a certain price, then they know something I don't know and I need to find out what that is" and "if they think they are going to make a profit, then why do I want them to make a profit and not me"?