OT mineral rights (by tim [AR]) Feb 24, 2010 2:39 PM|
OT mineral rights (by gevans [SC]) Feb 24, 2010 2:47 PM
OT mineral rights (by gevans [SC]) Feb 24, 2010 2:48 PM
OT mineral rights (by Reid [KS]) Feb 24, 2010 3:42 PM
OT mineral rights (by tim [AR]) Feb 24, 2010 3:59 PM
OT mineral rights (by Reid [KS]) Feb 24, 2010 4:01 PM
OT mineral rights (by X the Gypsy [FL]) Feb 24, 2010 5:50 PM
OT mineral rights (by Txmike [TX]) Feb 24, 2010 9:25 PM
OT mineral rights (by Irene [CA]) Feb 24, 2010 9:30 PM
OT mineral rights (by Reid [KS]) Feb 24, 2010 10:38 PM
OT mineral rights (by tim [AR]) Posted on: Feb 24, 2010 2:39 PM
We've leased our minerals five years ago (is up in May) for less than half what is being offered now. Everyone we know got more than us only months later.
Now again the first offer was twice as much as the first time but weeks later I have been offered 3x that amount. I'm excited to be offered what we were offered for another five years and the only catch was they'd pay us 25% now and if the people we've signed with now starts drilling we can keep the 25% but won't get the rest and will be stuck. They've sent us bank drafts, lease, etc.
Now everyone around here (mostly my family who have minerals) are screaming whatever you do don't sign anything you can get it for more if you wait. Rumor is they're going to drill and we need to factor in the amount of royalties etc but I can't figure without proof of more money to be had why I would wait. This reminds me of picking door number 1,2, or 3. Remember behind one door is a man and a donkey. This is like gambling and driving me nuts.
Does anyone have experience with this? It's hard to expect the person offering lease to have sound advice but my family can't seem to keep their feet on the ground with this thing.
OT mineral rights (by gevans [SC]) Posted on: Feb 24, 2010 2:47 PM
My family owns land in North LA, in the Haynesville Shale Formation. The mineral rights have jumped from $50/acre several years ago to $22,000/acre. That is not a misprint, $22k. The drillers are also offering 3/16 royalties. One of my mother's neighbors sold 1/16 of her 160 acre royalty for a cool half million. She still has the other 2/16.
Don't sell cheap. Check it out closely. Unless a completely new energy source is discovered, oil and gas are never going to get cheaper. It's unlikely the price will fall, but very likely it will go higher. --74.222.xxx.xx
OT mineral rights (by gevans [SC]) Posted on: Feb 24, 2010 2:48 PM
If you have the financial strength, you can refuse to lease at all and take a share in the well instead. It's a gamble, but a fairly safe one with a high payback. --74.222.xxx.xx
OT mineral rights (by Reid [KS]) Posted on: Feb 24, 2010 3:42 PM
What are they looking for , Coal Gas , or Oil? We leased our place several years ago for Coal Gas exploration, they had three years to drill or lose the lease . just a month or two before time was up they drilled and they must have found something cause they cased the well and put a cap on it but that's all they've done in the last three years. It's not producing anything. If it ever does I believe we get an 1/8th and free natural gas . --70.244.xxx.xx
OT mineral rights (by tim [AR]) Posted on: Feb 24, 2010 3:59 PM
I think they're after natural gas. During the last lease they laid all the lines for testing so it could be they think somethings there. This is lease not sell. They are offering $1,200 per acre. --74.194.xxx.xxx
OT mineral rights (by Reid [KS]) Posted on: Feb 24, 2010 4:01 PM
Be sure and ask for free natural gas and at least 1/8 royalty. --70.244.xxx.xx
OT mineral rights (by X the Gypsy [FL]) Posted on: Feb 24, 2010 5:50 PM
There are lawyers who specialize in leases of thi type. I'd find one and at least have a consultation. You never know what you have exactly or what they will pay.
Kind of like buying houses, they are not going to put their best offer on the table the first time you talk. --68.223.xxx.xxx
OT mineral rights (by Txmike [TX]) Posted on: Feb 24, 2010 9:25 PM
Tim, that is a little low. Here in ft worth area, I got an offer the other day for 3k an acre. 3 years ago I leased several for 1500 an acre, two years ago before the economic mess, leases around here were going for 18 to 20k an acre --173.74.xx.xx
OT mineral rights (by Irene [CA]) Posted on: Feb 24, 2010 9:30 PM
Mineral rights in LeFlore County Ok is what my sister and I have inherited. In coal country, there is a gas well now. They originally paid us over $6,000 to start the exploration, and they have a very deep vein they are drilling now, and when we get a check it's in the $169.00 range, and they don't come often..this has been Winter, so maybe drilling will pick up this Spring. --75.45.xx.xxx
OT mineral rights (by Reid [KS]) Posted on: Feb 24, 2010 10:38 PM
WOW , $1500-2000/acre I'm going to have to dig out that lease and see what it was we got . I know it wasn't anywhere near that . --70.244.xxx.xx