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Oil/Gas/Sale Mineral Right Hughes Co Oklahoma


Hi.  I recently received an offer to sell my mineral rights in Hughes Co, Oklahoma.   28 acres 16-6N-9E.  Price offered was $425 acre.  No production that I know of this time and property is not leased.  Is this a fair offer?  Thanks, Mary

Considering current oil and natural gas prices (oil down about 50% over the past few months) and assuming no permits for new wells (I didn't see any) or current lease offers of more than $50/acre I'd say $425/acre is indeed a "fair" offer currently, though earlier in 2014 (when oil prices were higher) it would have still been fair perhaps, but more on the low side of fair.

Currently I doubt anyone would offer much more than that for a non-producing, unleased property in this area with no prospects of being leased anytime soon. Buyers need to make a decent "return on investment" and with oil prices down so low right now it is beginning to discourage drilling, and of course drilling is what creates the value for mineral rights. If selling these, you'd want to find a buyer with an optimistic long-term view of things who might therefore be willing to pay more for their "future value" than is reasonable currently.

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


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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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