I have mineral rights in Canadian county ok and a land man wants to purchase my mineral rights would it be worth it don’t get much in checks but they want to drill more there’s about 30 acres of minerals any thoughts
If you need to sell, I would solicit offers from 2-3 different buyers to try and get an idea of how much the minerals are actually worth. The first offer you receive for mineral rights is rarely the best offer.
If you’re not in a position where you need to sell, I’d personally hang onto the rights.
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You need to find out about pending activity before selling. Old vertical wells are not indicative of the royalty potential of horizontal wells. If you want to share the section, township and range, the forum members can help with the leasing and drilling activity nearby. Buyers usually know what is coming and that is why they want to buy. They intend to make a profit.
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The landman that I talked to said they’re paying 700 per acre typically. I have 1 of my sections 1/2 acre not drilled yet and offered 5000.00 for 1/2 acre. I have producing wells on 38 acres. Producing wells should! Usually be worth more money. Funny he said 700 per acre and offered 5000.00 for 1/2 acre and wasn’t interested in the rest of my already producing wells. Selling all or nothing. Got another call today from a guy that wants all my rights.
Yep they know something is up because there isn’t even a permit in the section they want. And he offered 5000.00 for 1/2 acre. But he originally told me they’re typically paying 700.00 per acre in that area. We have prolly 5 sections already producing gas and oil if I sell I’m selling everything. And this is in Canadian county in Hinton OK.
Keep in mind that the sale of minerals can trigger potential capital gains tax liability. Know your basis in the property before considering a sale. If you follow this forum, you will see frantic posts each April from individuals who sold their minerals and are looking for a valuation from when it was inherited. Visit with a CPA.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
You state that producing wells should be worth more, but above say that you “dont get much in checks” on the producing wells. I think you answered your own question regarding producing wells. Producing wells do nothing but decline in value. Its clear the only valuable acreage they see is the 1/2 acre of the 38 acres. Since you only own 1/2 an acre, might as well just hold on to them all unless you are in a tight spot and need $2,500.00 soon