Has anyone ever considered swapping mineral rights? I have approximately 25 acres in SW Kingfisher county and wanted to get some feedback on the idea. I would only swap 1/2 of the acres thereby hedging my exposure to one section. The reason I am considering this is that my section does not have a horizontal but is held by production (Newfield). I've read all the corporate reports for the area and 10-20 wells per section is coming down the pipe, I just don't know when. By swapping I could increase my odds at getting one of the sections drilled earlier and diversify across the play. Any thoughts?
Seems to me, on the other hand, that it would also cut your income by at least half when wells do come in. Personally we have several sections that will probably have wells soon and I wouldn't want to sell (or swap) before the wells come in.
The idea is that you would have the same amount of mineral acres under the same lease percentages (aka 3/16) just in two sections instead of one. You have several sections that will probably have wells on them soon. How soon? Nobody knows, could be next month, next year or 5 years. Newfield says they have "decades" of drilling locations in the Stack. And what is the price of the oil when your section gets drilled, is it still in the 50's, 60's, 90's. I'd rather have it split in two sections to even out the extreme possibilities (time & price).
Personally I wouldn't swap. You might swap acre for acre of mineral rights, but how would you know if royalties would be equal. Production can vary section by section. Good luck with this.
GJJ,
I have purchased multiple tracts in the last few years in Oklahoma. Would be happy to discuss with you privately if you would like to msg/friend me. Biggest concern would be how you determine "quality" of what you are trading.