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Oil/Gas/historical mineral right value and current possible production


Hi, we have mineral rights (currently leased) in Roger Mills County  Township 15N range 26W section 35 sw4.
there has been interest in purchasing the rights and we are trying to decide what to do.

Do you know any information in regards to the current activity  at this location, and also do you happen to know historical value of this per acre mineral rights as of June 4, 2004?

Any information would be helpful.
Thank You, Julie

By selling them you will receive a lump-sum payment, but of course will give up any possibility to receive royalty payments in the future, or additional lease payments if they are leased again. Note also that royalty and bonus payments are taxed as "regular income" while (currently) any long-term capital gains from an outright sale of the minerals would be taxed at 15%. Some people decide to sell in order to receive this tax "benefit" rather than being taxed at a potentially higher rate by keeping them.

Currently I see no permit for a well in your section, however a well was drilled and completed in July of this year in adjacent section 3-14N-26W. It "came in" at 89 BOPD and 3575 MCFPD. Not a great well, but not bad. I doubt it's producing as much now as when it first came online. Most decline pretty quickly over the first year. The completion report figures just give you a general idea of how the well came in. I'd say the production in the second is more indicative of the well's "actual" daily production. Unfortunately those figures are not available yet for the public.

What were you offered for these (per acre) and from whom did the offer come? I'd be a bit wary of unsolicited offers you receive in the mail. While some are indeed fair, the fact that they came unsolicited leads me to believe that might not be the best offer available. Even honest buyers aren't likely to offer their "top dollar" in a mailing. Before selling, I'd put them in front of some other buyers before agreeing to your current offer in order to better determine their "true" market value, and of course that's only if you've decided to sell them. Just because you receive an offer doesn't mean you have to accept it of course. I get offers for my stuff every month. Sometimes I sell, but sometimes I don't.

As for valuing them in 2004, I don't have time to go into that in the limited time I have on this free forum, but if you decide to list them for sale on my website (The Mineral Hub) I'll be happy to look into that for you. My guess would be that they were worth quite a bit less back then however, as the "horizontal" drilling in the area was only just getting started back then.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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