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Offer To Buy Mineral Lease, Carter County, Ok

Corporate Law Discussions

Offer To Buy Mineral Lease, Carter County, Ok

Postby Aindreas » Tue Dec 06, 2016 6:16 pm

Dear Mick,

I'm trying to determine if the offer of $900/acre to purchase the rights I hold on 53 acres is a good price. The legal description is:

SE/4 and E/2 of Section 18, Township 5 South, Range 3 West

How do you suggest I best research such offers in the future? How does one determine the current productivity of an area? I live out of state, in Washington state. Thank you in advance for your attention to my question.

Joy
Aindreas
 
Posts: 41
Joined: Sun Feb 02, 2014 11:30 pm

Offer To Buy Mineral Lease, Carter County, Ok

Postby Rickie » Wed Dec 07, 2016 1:19 pm

Drilling Permits Carte

To research offers to buy mineral rights in any state it is best to have a thorough knowledge of the area in question. For Oklahoma, you can find out a lot of what's going on in an area by visiting the Oklahoma Corporation Commission(OCC) website, since they are the oil and gas regulatory body in Oklahoma. On their website's oil and gas database and case processing application pages you can find information on drilling permits and other regulatory applications that affect the area around your property as well as production information from wells that are already producing. In general the more activity there is in the immediate vicinity, the more valuable the mineral rights. Links to the OCC website's oil and gas database and case processing application can be found here: http://www.occeweb.com/Orawebapps/OCCOraWebAppsone.html Though much of your section 18 was leased back in 2008, there is no well permitted to be drilled yet that I can see, but that could change in the future because there are several current permits for wells in the immediate area. If a good well is completed in an adjacent section it's likely your section will eventually be drilled as well, which would probably increase the value of your mineral rights there. Right now however, and considering no such wells have been completed, I'd say that $900/acre is not a bad offer. I'm attaching a map(used with the permission of Drilling Info) showing where drilling permits have been issued in the past 365 days in your general area. As you can see, most of the current activity is to the NE and SE of where your minerals are located(basically in the center of the shaded area of the map.) There is only one recent permit in your township, and it's a couple of miles south of your section 18. Drilling Info, where I got the map, is a paid subscription service that has production, leasing, and other information for many states in the U.S.; including Oklahoma. Their website is http://www.drillinginfo.com/ You might want to check them out as well as the OCC website above. If you've only received one offer to buy these, but do want to sell, I'd suggest you get some other offers before agreeing to that price. While I do think that $900/acre is a fair offer, you might find someone willing to pay more than that, but they'd have to know about them in order to make an offer. The "Sell Mineral Rights" page on the Mineral Hub website(my website) is used by many owners wanting to sell mineral rights as a way to get their property seen by multiple buyers, and it's free to list. With 53 acres, even a couple of hundred dollars difference per acre could make quite an impact. On the FAQ pages of the Mineral Hub you can also find more information on how buyers value mineral rights, how to value them yourself, and also read about some of the reasons people decide to sell, or not sell, their minerals rights. http://www.mineralhub.com

Hope this helps you out! Frederick M. "Mick" Scott CMM, RPL

Timbercreek Mineral Company, LLChttp://www.mineralhub.com  
Rickie
 
Posts: 55
Joined: Sat Jan 11, 2014 3:36 am

Offer To Buy Mineral Lease, Carter County, Ok

Postby Ellis » Sat Dec 10, 2016 3:59 am

Dear Mick,

I'm trying to determine if the offer of $900/acre to purchase the rights I hold on 53 acres is a good price. The legal description is:

SE/4 and E/2 of Section 18, Township 5 South, Range 3 West

How do you suggest I best research such offers in the future? How does one determine the current productivity of an area? I live out of state, in Washington state. Thank you in advance for your attention to my question.

Joy
Ellis
 
Posts: 41
Joined: Mon Mar 10, 2014 1:36 pm


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