Recently received a solicitation to purchase mineral rights in Section 21, Township 6 South, Range 2 West of Love County from Kraken Energy LLC. Is anyone familiar with them? Also, does anyone have an idea of the going price for a mineral rights buyout? The section is not currently under lease and is non-producing.
I don’t know the current selling price in that area. However, if you’re interested in selling your mineral rights, one thing you can do is research different companies that purchase mineral rights. Reach out to them and let them know you are interested in selling and create competition amongst them to help increase your offer. This is the same approach we did when we leased our minerals as well. It never hurts to try.
That is great advice. Thank you! I’ve learned that the non-producing and unleased sections have less value than currently leased or currently producing sections unless, of course, there is activity in nearby surrounding sections that can be used as leverage. If you receive an offer to purchase, it actually may be more beneficial to seek out a lease and most importantly be patient.
I definitely agree! If you’re getting offers, it’s possible that they know production may be moving in your direction at some point. Me personally, I’m never selling my mineral rights. They aren’t costing me anything and there is always a possibility for them to be leased and drilled.
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Do you mind sharing what they offered per acre?
There was no dollar offer other than an interest to purchase. So, maybe they were just interested in the number of mineral acres. Thanks for responding.
Several companies are leasing in 6S-2W. Closest to you is LE Jones in sec 27.
Thanks for that information.
You just answered my question. I too received an offer to buy from Kraken. My rights are in 6S-2W. Do you know any companies who might be interested in leasing this property?
If your name and address and description of acreage are properly filed in the Love County courthouse, agents will find you if they are interested.
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I called Kraken Energy and got what I considered (not that I know much) a decent offer for non-producing area that hasn’t been leased in 5 years. Then I called a couple of other companies I’d heard from over the years and got low ball offers. They both said they’d grab the offer I had. One said it was a good offer considering that a well had been drilled in the area and it didn’t do well. Then I called LE Jones since M_Barnes said they were leasing in Love, but they weren’t interested in my sections. I would like to sell but have my antenna up on the Kraken Energy offer due to the disparity of the offers and I can’t find out much about Kraken Energy.
Don’t know what section you are in or what your offer was but from what I am reading I will hang tight. Never a good idea to sell too early. Offers from companies can be an indication of something in the works and allows companies to purchase on the cheap. A value on a section can rise if a producer or operator moves closer to your section and permits are issued for their activity. My investment in the minerals is not costing me anything so I can afford to wait. Waiting is my best leverage. Kraken is not a producer or operator but has mineral interest.