Can anyone tell me anything about this section of land? It is owned by several of my family members. None of the are in Oklahoma. Is there anything going on aroundit. How much land is it? We have had several offers to buy the rights. All of the people involved are in their 80’s and do not want to do anything unless it is sure there is gas/oil on the property. Any help/advice would be welcomed!
I had been purchasing mineral rights in Payne County also and have seen some low offers being made as most are dealers looking to buy low and re-sale higher to people like me. Results in the county have been spotty like all of the Mississippian and Woodford formation wells with an extreme decline rate. There are some 16 bopd wells on initial production and some 500. There are many that will not be economical and companies are still experimenting with techniques like Range are doing everything they can to make it feasible like making the disposal well bigger in bore and at an angle to be able to place 8 wells on one disposal to cut cost. It is still uncertain if long term explorations will occur or if they will realize they just can not make money and cease drilling activities.
Braedon,
I don't think your family will see much production income from Section 4 in the near future. However, there are some good operators working in this multiple pay zone area. As they figure out how to best use the most recent drilling and completion techniques and apply it to the known geologic formations in the area. I doubt if the purchase offers are for much money right now but will grow with success in the surrounding areas. If your family wants to hold on for the long term, I suggest that all the mineral interests be consolidated under a young person's control. If the family doesn't do anything and the mineral rights continue to be split up, the future value will decline very rapidly. The more elderly owners will have the satisfaction of "keeping the minerals in the family". I think the time will come for Section 4 but it won't be soon. Lease bonus and sales will be the only cash generating transactions in the next 5-10 years.
Actually one of those statements is not correct at all as large tracts have fewer buyers who want to pay less per acre and I have seen smaller tracts bring many times more than larger. I also not true on one of the other statements as buyers were paying more and have lost interest in these target formations. They are also not going to wait 5 -10 years to drill. Gary, where did you get all this information?
Is there any new information regarding leases in the area. Our family's lease is up and we want to be assured we are getting the best deal as possible. Is 125/acres a good deal? The expired lease was for 18n months and the leasing company has sent a proposal for 3 years. I have not been to the area in many years (80's) and test well did hit oil and found gas. Now that my grandparents are gone not much is known about the lease or the original homestead.