what is going on in Johnston county Oklahoma. I have received offers to buy my family’s interest for the first time. We have been receiving royalties from Chevron on wells in Grady, Stephens, and Johnston counties but they have decreased over the years. What is the interest in Johnston county now?**
You need to give a section, township and range in order to get an answer.
XTO and BNK Petroleum have had active drilling programs in Johnston and Marshall over the past few years. This is a quiet play for most for a few reasons:
- It’s too small for XTO’s parent company to bother discussing in public presentations
- A lot of the area is leased up and was already HBP by XTO in the past
- The area is geologically complex with a lot of faulting, making parts of the play section-by-section
1 Like
My family has mineral interests in Johnston county Oklahoma in sections 7 and 12. Lately I have had several offers to sell. Don’t know what is making them all of a sudden interested. We receive some income from Chevron in Johnston county but it has really dwindled over the years. Does anyone know anything about the sudden interest?
There has been an upsurge in the creation of “royalty companies” in the last few years. There are quite a few mineral buyers out there buying up acreage in areas that have production, especially if there is the potential of future drilling and more production. Then the buyers keep the acreage or flip to bigger aggregating companies that combine the properties and form a royalty company that goes public on Wall Street.
For the mineral owner, we have to figure out it their offers are “fair”. In my experience, my offers have been lowball compared to the values calculated by certified petroleum engineers for my known and currently producing wells and quite low compared to the value of the increased production from future wells. So if I needed to sell, I would ask for quite a bit more than they offer.
1 Like