My siblings and I have started to receive offers for our mineral rights for 11 6N 6W and 14 16N 6W. The first company offered 5000 an acre, now we are receiving offers of 2000 an acre. Why such a big difference? I obviously am skeptical of the offers, what are the going rates? Can anyone shed some light? Thanks! J.Bird
The offers may be vastly different depending upon where you are in Kingfisher. It depends upon the geology and how many reservoirs are potentially viable. I am assuming both of yours are in 16N since 6N is not in Kingfisher.
Some companies try the low offers and see if they can get someone who is not informed to bite. Others are closer to market value, but almost all are less than the true value. Lots of times, the buyers know that something is about to happen and try to buy in before it is common knowledge.
The prices offered will also depend upon if you are already leased or producing and at what rate.
Your section 14 has a horizontal well in the section 22 catty corner to it, so will probably get a higher offer than 11 which does not.
There is lots of horizontal drilling in 16N 6W, so yours may come along when prices get higher. Personally, I would not sell at those offers if at all. In my experience of many decades, the first offers are usually about half of what they might eventually rise to. Not always, but frequently....
JoAnn...are these offers to lease or to purchase your rights? Sounds like they might be to purchase them. I figure the big drops in oil prices probably have something to do with the drop in prices in either case.
Section 11 16N 6W is producing, newfield is the operator for both the gas and oil. Jax investments made an offer of 2000 per acre on 49.75 net mineral interest. I am just very reluctant knowing that like you said this is probably a low ball offer. My other concern is if we sell how much will taxes be? I have read that it may be just 15% capital gains or it could be taxed at a higher rate. Any further suggestions?
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JoAnn,
I am very familiar with this area and would be happy to help you with any questions you may have. In the meantime below is a link to our company website. This may be able to assist in answering some of your questions. Many people are out trying to lure mineral owners with "low-ball" offers, so you must be careful. Please let me know if you have any questions,as stated I would be happy to assist you with any questions or concerns. I look forward to being able to assist you.
Kind Regards,
Ryan Williams
(432) 638-6185
Rwilliamsland@gmail.com