We have mineral rights in Garvin County OK. Which appears to be an active area. Should we sell or lease? It’s aprox 48 acres in different sections and the largest section seems inactive. Thanks
Do you have an opportunity to lease or is it relatively hypothetical at this point? As to the general question, it differs or should differ from person to person. Things to think about or consider include, but are not limited to:
- do you need the money or just want the money? There is a difference.
- Can you use the money for something else?
- Are there outstanding issues to consider? Medical bills, children’s or grandchildren’s college needs?
- If you keep the interest, will your children take care of this? Or will it be ignored and end up being abandoned.
There are people on this site who say never sell. But, 1) they aren’t in your shoes or position in life, and 2) people will sell the house where they raised their children, but somehow these minerals they inherited from parents or grandparents are sentimental.
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I am one of those never sell types. Of course, some people have emergencies and must sell, but if it is just a business decision I would never sell a royalty interest. Working interest are different. But some royalty interest can become life changing with new drilling technologies. If you don’t have a critical need for immediate money, just hold it and give luck a chance.
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Garvin geology changes over the county. Older drilling in Garvin was conventional holes until the last few years. Newer horizontal drilling is coming in several areas, but depends upon location. If you want to share the section, townships and ranges, we can help with activity.
Agree with Tim on his comments as to how to think through a decision.
In general, offers to buy are usually in areas of pending activity. Different groups have different algorithms, but many are for the value of the currently producing wells for a certain amount of time (~3-5 years in the future) discounted for the time value of the future money. They rarely offer for the value of the pending activity as that is how they intend to make a profit. You need to factor in whether your family is wanting that profit in the next few years and what it is worth to you.
Sections 6,7,8. 1N 1W
Section 28 2n 2w.
Sections 6,7,8. 1N 1W No wells, no leasing in 6 or 7, 8 has wells in the northern half. Some leasing in the last 24 months by Ventana E&P. Faulting may impact parts of 7 & 8.
Section 28 2n 2w. Swichgrass has a horizontal well on the far eastern side which is probably holding the whole section as HBP. George 1-28 USH. Room for more infill wells if they are economic. Has more than half of its estimated ultimate recovery left to produce. They are leasing in the section to the south in 33. I could see some multi-section infill horizontal wells with 28/33