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I have received several unsolicited offers for my family's 320 acres in Sec 26 T16N R13W in Blaine co Oklahoma, the highest offer is $3000 per acre.  It was recently leased with 3/16 royalty.  Even though oil play has declined of late, I feel a purchase offer should be in the $4500 to 5000 range. Please give me your opinion.  Thank you

My question to you would be why do you think they're worth $4500 to $5000/acre? If you're of the opinion they are worth that much then you should be able to back up that valuation with some relevant facts if you are hoping to convince anyone to pay that much. Otherwise you're just "whistling Dixie". Sounds pretty high to me for this area frankly, based on recent comparable sales in the immediate area and the dearth of any decent wells nearby. Consider the method below that many buyers use when estimating the value of leased mineral rights. Since you apparently leased fairly recently this method could be applicable to your mineral rights.

Many buyers will base their offers on a multiple of the lease bonus per acre you received. A multiple of 3 times is common. For example, if you were paid $1500/acre for your recent 3/16 lease, that would perhaps justify an asking price of $4500/acre to buyers who use that method, and many do, at least as a starting point. The "3X rule" only estimates value of course, and there are other factors buyers consider in addition to bonus amounts. Drilling activity in the immediate area (if any), production rates of currently producing wells, the lease royalty, the operators working in the area, formations being drilled etc. are also important considerations that could affect an offer one way or another.

Based on the brief look around the area I took, if it were me I'd take the $3000/acre offer before they changed their mind. Even if a well is drilled it would probably take many years for an acre in this immediate area to generate that kind of income per acre. That's my opinion. Sell the minerals and invest the proceeds in some income-producing real estate.

Hope this helps you out.
Frederick M. "Mick" Scott
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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