Westhawk Minerals

Hello,

I signed with Shell last year.  Now I got a letter from Westhawk MInerals offering $3,000 an acre for my mineral right. I must admit it is a little bit tempting since I do not know if I am going to be in a unit or if Shell plans on drilling any time soon, and I am looking to retire.  I have 52 acres in Londonderry township in Guernsey county.  Any thoughts? 

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2wnbjkbqgwdf2Permalink Reply by 2wnbjkbqgwdf2 on May 6, 2012 at 10:56am
I would give you $3250
Permalink Reply by Cen on May 6, 2012 at 11:59am

sign a top lease. That way when Shell backs out at least u have something.

Permalink Reply by Robin Hood on May 6, 2012 at 12:00pm

I'll make it $3500.

2wnbjkbqgwdf2Permalink Reply by 2wnbjkbqgwdf2 on May 6, 2012 at 12:35pm
$3550
Permalink Reply by Billy Park Whyde on May 6, 2012 at 12:09pm

I'd hold out  on retiring  or least think very very hard about it! I know of individuals that couldn't wait to retire and found out being with the wife 24/7 isn't as easy as the work was. Ya normally see these guys at Walmart saying Welcome to Walmart! Selling mineral rights is a one time deal with no turning back. With a lease you might if worded right get a decent bonus and possibly renewal payment or another lease plus royalty

 You might consider selling the property outright with mineral rights included which opens the door to speculators also.

Permalink Reply by Kathleen on May 6, 2012 at 2:20pm
I personally would wait at least a year and see what shell does. 156,000.00 is good money but you could do better. If I was to sell them I would contact an auction house and see if they are interested. I really think 156 thousand for 52 acres of minerals seems low.
Recently someone sold theirs already leased for more at auction. The link was on this site but I don't remember where right now. If I remember right it was 100 acres and they got 3800.00 per acre. That would be 41,600 more minus the auction fee. If the drilling picks up and the numbers are good in your area these numbers could even go higher and you wouldn't have the tax burden of the royalties.
Everyone has their own personal thought on this topic with some people saying never sell. I think if someone really thinks about it, looks at it in all directions and still wants to sell than they should sell.
Permalink Reply by Susan A Tippel on May 7, 2012 at 7:40am

I have decided to wait.  Westhawk does not have website that I could find and that is not good.  And, yes, the price seems low. Thanks for responding.

Permalink Reply by karen smith on April 16, 2013 at 6:54pm

this is the link to westhawk

www.westhawkllc.com

Permalink Reply by Susan A Tippel on May 7, 2012 at 7:46am

LOL. I've wanted to retire since I was 21(I'm a women and staying home with the man won't be any picnic either).  But I am going to wait--you are right--selling mineral rights is very permanent.

Permalink Reply by Jimmy Wilson on May 7, 2012 at 8:31am

Susan,

 

Did Shell pay you ?

Were you in a group or did you sign the standard Shell lease ?

Permalink Reply by Susan A Tippel on May 7, 2012 at 10:54am

I was in the Matt Crislip group.  Yes, I got paid. Although I know there are people who have not been paid yet.

Permalink Reply by Bryan R Cope on August 28, 2012 at 12:14pm

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