Hi
My family owns some rights in section 27 1525
We have had some interest as of lately mostly to sell rights. Is there any activity in this area ? Why such the sudden interest?
Thank you
Richard H
When we get calls, it’s because they know something we don’t. Lease, but never sell! A flurry of calls means you’re either going to get a division order soon (good news) or your parcel is needed to complete a larger portfolio for a middleman to make a commission on a deal that may never come. Ask they caller if they are a driller themselves or if a drilling permit has been granted nearby. If they can’t tell you what your net acreage is or how you got it - then hang up. They want you to do their homework for them. At over 100 requests a week, I’ve learned not to give away information about my situation for free.
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A lot going on in Roger Mills county right now. Definitely don’t make any decisions quickly. Other people on this forum should be able to give you helpful insight onto what is happening in your section and nearby.
The Oklahoma County Records website shows quite a few leases signed recently in your specific section. It means the likeliness of very fruitful horizontal oil & gas wells are coming your way in the next few years. Good companies like Mewbourne, Crawley, Charter Oak and I’m sure more drilling wells all over Roger Mills and it seems like it’s still in the early phases with many proven wells coming online in the last year or so.
https://okcountyrecords.com/results/section=27:township=15N:range=25W:site=roger+mills/page-1
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Typically, this occurs when there is new geology, someone had a good well nearby. Should give you leverage in a negotiation to lease. At this point there would be little reason to sell and lots of reasons to hold. As you receive inquiries, ask those parties what’s happening in the area. I always love when I get letters offering to purchase assets. Most of the offers will be low balls and not worth your time. The general rule of thumb is not to sell mineralsaminerals
Do any of the offers state, or do you already know what your net minerals acres(NMA’s) total is, which is the amount of acres they are looking to purchase from you? The amount can impact your negotiations and how much time or energy the landmen will work with you. If you have a decent little chunk of acreage, you’ll want to get an Oklahoma lawyer involved.
The last filed lease was granted to Upland, they are an operator. Otherwise the most recent are to Summit, and then starting in mid-ish 2024 a company called Pinson. I personally would reach out to Upland for leasing as I’ve contacted them before and were nice and responsive.
Some people might recommend waiting for companies to reach out to you, but an email or two to a company doesn’t hurt anything. Just don’t jump on any offers if you get one.
You can always hold out to be “force pooled” which will most likely get you the best terms for royalty payment as it’s state regulated.
The new horizontal play is for the Cherokee. You should be able to get a 25% royalty in your section either by leasing or by pooling. Upland is drilling in 35/26.
If you have not leased recently, it is wise to get an attorney to review any draft lease as they are not in the mineral owner’s favor and require significant edits. Or you can wait for force pooling and take the highest royalty option.