I am getting an offer from Hefner Energy out of Oklahoma City for my mineral rights for my mineral rights in Grady County. I'm contacting SCOOP to see what the exact acreage is, but the offer is for $4000 per acre. Here's the info I get on my checks (which were coming from Vitruvian II Woodford, but I guess they sold to SCOOP).:
I would think you can easily get $10,000-12,000 per acre depending on your royalty. That offer is very low.
Thanks, Ben. Wow, that's a lot more than I would have guessed. What do you mean, depending on my royalty - just the amount that I receive each month?
I have received some legal paperwork recently that seems to indicate more drilling (horizontal, I think). Is that driving the price? I've read that there are some big gas wells in Grady county. How would I find out if there are new wells coming that might affect my royalty from these acres?
Sorry, I didn't look up the current activity, but it looks like you are about to get 8 new wells in the section. You will be able to get a lot more money per acre than I originally stated.
Is there a way to tell how the new wells will affect royalties? I'm inclined to keep my rights and see what happens.
Won't really be able to tell till all the wells are drilled. If they are equivalent to the first two drilled, figure 4x what those first two pay. If someone wanted my royalty there and I was inclined to sell (especially with the really good Ward well in 26-5N-6W), I would have a hard time parting with it for $25K an acre. Might take $35K/acre or more, but thats just my opinion.
Using a base of $50/bbl oil and $3/mcf nat gas the first 2 wells should each on average return $3,850/1st year and $7,750 each over a 4 year period per NMA.
If the 6 new wells are as good as the first 2, then... $7,750 X 8 wells = $62,000 Per NMA
There are 3 rigs drilling away right now. All in view from my dad's front yard. :)
Thanks for the information, Earl. Again, those numbers are pretty amazing. It seems like it might be worth it to hang onto my mineral rights. Knowing that information, I'm not inclined to take the $4K per acre. Of course, no one knows what will happen until the wells are drilled and they start extracting the oil and gas.
Thanks for the information, Don. I'm just amazed and really appreciate knowing more about what's happening there. If they are drilling now, how long does it usually take to see the first royalties - I'm guessing maybe 12-18 months or so?
My guess is 12 months give or take... if they don't run into any problems.
Am interested in selling Mineral Rights in Grady County Sections 12-10N-8W, 13-10N-8W, and 14-10N-8W, and was wondering if any of the information in the above Discussion would apply to determining sales value in this area?
The Grady Sections are currently producing.