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Question
I own 8 mineral acres 6-11N-24W and 1/5th production in roger Mills county. Currently are leased but will expire 2/2/14. They were leased originally for 2200. an acre. I have not seen any drilling permits filed,not sure of activity close by. is it very common for leasers to file extensions?  I would like to wait till the lease expires to see what they are going to do, but an investment opportunity has came up and considering selling. could you give me an idea of what the price range of mineral acres are in that township and range? would I be hurting myself allot by selling before lease is up? any help would be appreciated. Thanks

Answer
No permits in your section or the surrounding ones currently, though there is activity in the general area (especially to the north.)

Your lessee will likely renew your lease only if they plan to drill a well within the next primary term, though it's possible a different company might want to lease you as well once you current lease expires. I don't see any evidence that is happening either however, as the most recent leases taken in your section were filed back in 2011. You can of course sell them whether they are leased or not.

As for value, the range in Roger Mills (or any) county will vary greatly depending on how active your immediate area is. If you do decide to sell these you really might want to consider posting them for sale on the Mineral Hub rather than dealing with someone who sends you an unsolicited offer in the mail out of the blue. This is my website's (free) listing service, and you'll get exposure to MANY buyers that way, rather than just one or two. I will also work with you to value them accurately once I have your listing if you're not sure what price range to expect.

To answer your question though, I don't think you'd be "hurting" yourself by selling, as long as the price was a good one and you were selling for the right reasons. If you're not in a hurry and can wait another ten years then keeping them might actually be the better choice, because even if no well is drilled you might be able to lease them several more times in that period. I say "might" because it's ALWAYS going to be a gamble (for both buyer AND seller) as to what's going to happen in the future. If I could predict the future with accuracy I'd be driving a lot nicer car ha ha! It really depends on what your current financial goals are as to whether you should sell or not.

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

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Frederick M. Scott

Expertise

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.

Experience

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)

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