Approached to sell royalties

New to this site. Has Anyone sold their royalties? If so how much did you receive. We have been approached by a company wanting to purchase some of our interest . We own property in western guernsey and western noble counties. We are strongly considering selling a portion. Any input would be appreciated.

Views: 8582

▶ Reply to This

Replies to This Discussion

Permalink Reply by Glenn C. Keith on July 6, 2012 at 3:01am

MKMC~

I want to be sure this is not a typo, did you mean $1 million per acre over the life of the wells? That seems like a very shocking number. If so, are these numbers the average of all wells?

Permalink Reply by hopeforoil on July 6, 2012 at 3:14am
Shocking because it is simply not accurate. Please cite your source of "statistics". From what I've read the range in value is vast, from a few thousand an acre over the life of well into the tens of thousands per acre and everywhere in between. The value depends on a very large number of factors.
Permalink Reply by Shocked at SHELL on July 7, 2012 at 3:04am

What a complete JACKAZZ now no matter what you says on here you have just made your opinions completely worthless go back to OZ toto!!! Life time royalty's are more like $40,000 thats thats at today's rates and if your unit is fully completed with atleast 8 horizontals.

Permalink Reply by MKMC on July 7, 2012 at 3:33am

Are you kidding me people are getting more bonus money than that for just signing the lease.   $40,000 over the lifetime of the well is that what your telling people to get them to sign their interest over.       Anyone who signs away their interest away in my opinion to one of these no name never drilled a well companies who are just trying to rip off you and you kids and their kids.

  Well all I can say is  HERE's YOUR SIGN !!!!    

Permalink Reply by hopeforoil on July 7, 2012 at 4:39am
Ok you've been proven wrong by multiple people but refuse to admit it. Here's a couple links I found by using google that might help you understand. But again let's do very simple math. Let's assume a well produces 1 million barrels at $100/ barrel that's $100 mil gross for company. Assuming a 640 acre unit, and using your estimate of $1million/acre that would mean the oil company would have to pay out $640 million in royalties. $100 mil made minus 640 mil paid = you are wrong.
Here's a couple links that might (doubtful) bring you back to earth

http://www.southlakedrillingfacts.com/SouthlakeDrillingFacts.com/Fa...

http://louisianaroyalties.weebly.com/faqs.html
Permalink Reply by MKMC on July 8, 2012 at 3:34am

Why do you keep just referring to the oil production your lease reads OIL and GAS at the very top of the lease in bold print.    The only one here that does not have a clue is you so go ahead and sell your royalties and we will come back here in 10 years to see who was rite.    If natural gas is paying one dollar a cubic foot and as we have seen and it has been reported to your state then that would be $600,000.00 a day in just natural gas production alone take that figure and multiply by 30 days that is 18 million a month now do your simple math!!!!

Permalink Reply by hopeforoil on July 8, 2012 at 4:10am
Once again your numbers could not be more off the truth. If oil companies were making 18 mil a month at $1 nat gas do you think they would be leaving proven gas fields (Marcellus, Haynesville, etc...) to search for liquids in unproven areas!? If a well is making 9 mmcf a day (which is a good producer) at your $1 figure that well would gross $9,000.00/day or $27,000.00/month. I'm not sure if I'm making the right decision or not buy selling a portion of royalty. But I will be making an educated decision based on real numbers. Not "pie in the sky" figures you continue to post.

To answer your question though, I use oil in my examples because that is the valuable commodity at this time not natural gas.
Permalink Reply by MKMC on July 8, 2012 at 4:35am

Not (Pie in the sky number) look at the stock market today to see what natural gas is selling for then multiply by the number of cubic feet being produced.    As I have said in previous threads it is still in its infancy stage like oil was years ago. But if I have made you think twice about selling I have done what I intended to do I just d0 not want to see people in the area that finally have a chance to gain in the future get taken by people that are Sharks of the industry.

Permalink Reply by hopeforoil on July 8, 2012 at 5:08am
Thank you. I have not made my decision as it is a difficult one. I just want to point out that your numbers are incorrect. Nat gas has been trading around $2.75mcf ( thousand cubic feet) so a well that produces 10mmcf/day (10 mil cubic feet) for an entire month would produce 300 mmcf for the month or 300,000 mcf. So you multiply the 300,000 mcf by the $2.75 and you come to $825,000 for the month gross for entire unit. 10 mmcf/day is a strong producing well but still a FAR stretch from your figure of 18mil a month.

I really do appreciate you input. And I'm just trying to make an educated decision. I've done done a great deal of reading on the subject lately. I'm a realist. I would love for your numbers to be closer to reality but they are not. If you can show me some real production figures that come close to your numbers PLEASE do. If they are anywhere near them you will have convinced me to not sell
Permalink Reply by john p halloran on July 8, 2012 at 5:35am
MCF=1000 cubic feet !!!
2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on July 8, 2012 at 4:39am

MKMC:

Me thinks we are surrounded by those who stand to profit immensely from the carcasses of the deceived!

I , like you , prefer not to be among those who succumb to the B.S.

I would rather buy MYSELF a boat for Lake Erie and live the good life someday rather than facilitate SOMEONE ELSE'S good fortune at my expense.

There are many plays down there under my land and each has the potential to make me richer than I am. Combined , who knows what the potential is?

BE CAREFUL FOLKS! The Sharks are swimming overtime.

 

Permalink Reply by hopeforoil on July 8, 2012 at 5:59am
John. Mcf is thousand cubic feet. Mmcf is million cubic feet. I'm not sure if that was unclear in my previous post?

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service