Question I have a current lease on my mineral interest and have had contact from a few different companies to purchase them. They are in Carter County, Ok and they are Sections 01,03,10,11, & 12 (T:5s, R:2w). I am positive about selling them and understand that I wont make a fortune--but don't want to give them away! Most of the offers are between $650 to 1025 per acre. This seems like a lowball offer (based on lease agreements) and am prepared to counter at least to double the offer. What is your opinion? I just got the leases in October (my father passed away in 2008) and have no experience with this business. Thank You in advance for your time!
Answer Best way to find out what they're "really" worth is to get them in front of more potential buyers. Listing them on my website, the MinerL Hub, is a great way to do that and as a client (free to list though) I will also help evaluate any offers that come in to make sure they aren't "lowballs" and are from legitimate buyers. I can't spend a lot of time on All Experts evaluating offers people recieve however, so please list them for sale on the Mineral Hub if you'd like me to look into values in this area more. Sorry, but I get tons of requests like this and so must limit my response time on this site.
That said, most unsolicited offers are somewhat "lowball" offers that leave room for improvement. I don't know about asking for "double" is realistic, but couldn't hurt. All they can say is "no" right? As for basing their value on multiples of previous lease offers you've received, you do need to be careful there because in some cases previous lease offers from several years ago do not reflect current values at all.
Hope this helps you out.
Frederick M. Scott CMM, RPL
The Mineral Hub
Knowledgeability = 8
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Thanks for the info. I was expecting this kind of answer.
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.
Organizations National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)
Publications National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.
Education/Credentials Certified Mineral Manager (CMM), Registered Professional Landman (RPL)