Have you received an offer to buy your minerals? What State/County/Township are you in?

I'm in Ohio/Noble/Marion and continue to receive offers.  14 so far by mail, and another arrived yesterday.  Post your information and I'll draw a map of "mineral interest".    Have your offers increased, remained constant, or stopped coming?  Just curious, and it might be fun.  Thanks.

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Permalink Reply by Richard Droske on May 28, 2013 at 3:56am

You will never get a lease where they promise to drill. But from what I've seen they don't make any false promises, they tell you straight up that they may or may not drill at their discretion and dont even make statements about the liklihood.

 

As far as flipping it goes if you lease to a reputable energy company (something your must have lawyer can tell you) yes there is the possibility that they could put together a group of properties and for whatever reason decide to sell those rights.

 

But I think this would actually be a positive sign. Anyone able to buy such a package must have ample financial resources. And since they would be paying a premium price (since the group was already organized and seller would be expecting a profit) one would think they would be more likely to drill.

And what they would be buying is the exact same contract you signed with the first company so no changes too you at all.

Permalink Reply by The Hiker on May 24, 2013 at 6:24am

Anthony:   Great.  Thanks for the info.  Best of luck. -Hiker.

Permalink Reply by ann m. Becker on May 24, 2013 at 6:41am

I would have signed on earlier in 2012 but had other pressing priorities at the time and missed the boat, so to speak.

Last offer in November 2012 with deadline was $2,000/acre...at least $1,000 less than neighboring Mercer County residents.  I declined.  No further offers from Hilcorps. So... my 6 acres remain pristinely in tact while surrounding neighbors profited with their deals.  

So it is.

Permalink Reply by searcherone on May 25, 2013 at 5:32am

I love baseball and you know there are singles,  doubles and triple plays for outs in baseball. IMHO you will be out if you sell your single formation shale layer, you will be doubly out if you sell your double formation mineral rights, and if you are blessed to have the triple formation producible layers you will never forgive yourself if you sell.

Here is a quote and link to tell you that the giant money people want your money and this is where the action is: in layered formations!  Bob is trying to tell us all that there is more than one producible formation and I was aware there were two for my area, but there are three.  My money is definitely on Bob's brain, for I think from his posts he is 99% more informed than the rest of us.  He is able to see a very broad perspective and put it all together.

Here is the quote: "Credit Suisse said existing areas with "stacked" pay targets-i.e., layered formations-are better bets right now."         http://blogs.platts.com/2013/05/23/shale-future/    

And yes, I received a letter from Flatiron, and several others that I don't remember,  I am in Monroe Co. Ohio, Jackson Twp.      And I have a triple formation, rhinestreet, Marcellus, Utica.

 

Permalink Reply by The Hiker on May 25, 2013 at 8:18am

Thanks Searcherone, always a pleasure.   I am not familar with the Rhinestreet; is that only on the extreme east side along the river?  You are the first to respond from Monroe County.   Thanks.  Any more out there?   You would think that with all the activity there would be lots of landowners with offers?  Maybe it will just take some time.  I got another one Friday.

So far:

Advanced Royalty

Paul Miller

Money for Minerals

Flatiron

Bounty Minerals (2)

Joint Resources

Strategic land Partners (2)

LL&B Minerals

Keystone Mineral Funding

Pioneer Land Company

NorthOak Resources

Two more that were thrown out early before I started collecting...

How many are shils for the O/G companies?

Permalink Reply by searcherone on May 25, 2013 at 9:22am

Hiker,

In a post I asked Bob about Rhinestreet and he says it lies above the Marcellus and I know very little about it perhaps he could tell us more.  In a link Bob posted and I think it was an Antero presentation, the man said we drill to the Marcellus which will hold the Rhinestreet and we can come back to that later. 

You know Hiker, its the old the company can hold any formation drilled through, even if they are not producing it.

Also read transfer in the Monroe County Beacon that Westhawk bought 12 acres of minerals in Lee Twp, Monroe County.

Permalink Reply by Oliver Perry on May 25, 2013 at 12:38pm

Many areas have even more than triple formations to drill. Here is a page from REX Energy's May 2013 Presentation showing the formations in Butler County, PA. Click on the image to enlarge.

Permalink Reply by brat on May 26, 2013 at 4:03am

Donna, wonder how that would translate to purchase in the Utica?  A letter from Buckeye Sierra to me stated that total revenue from one well here could produce 3 million over the life of the well...just not sure how that fiqures out.  I'm still trying to fiqure out how much that would be for my 1/8th interest per acre for the first few years.

Permalink Reply by The Hiker on May 26, 2013 at 5:04am

Interesting stacked play illustration.....Good luck to all that will be able to take advantage of this....and think about it when an offer is made for your minerals.   Bob's thread on GMS is following this story.

Any more people out there with offers for your minerals?  What State/County/Township?  Where is the interest?

Permalink Reply by Rick on May 27, 2013 at 12:21am

I have severral questions, if you sell your mineral rights, i assume the new owner of the mineral rights takes ownership of the lease that you agreed to. Does that mean they can renegoiate when the lease is up? Does that leave you at risk for terms that they negotiate? As their only interest would be in the money without regard to environmental or cosmetic terms, could they basically destroy your farm? I would be very very afraid of this situation. OR do you still hold surface rights, and can prohibit them from drilling at all? Can you refuse to even let them on your property thereby stopping them from building a pad... or machinery storage, compressor stations etc.. how are these things handled? I do believe this could be a can of worms...

Permalink Reply by The Hiker on May 27, 2013 at 2:14am

I think this is the way it works also.   Maybe the best way to recieve some money now for oil/gas production later (if that is what you want to do) would be to sell your royalty rights, not your mineral rights.  This may be a method to preserve the integrity of your land and prevent the bad stuff (land destruction, loss of surface value...) from happening.    I think the royalties are really what these guys are after.    

Is there an attorney out there to comment? 

Permalink Reply by Rick on May 27, 2013 at 2:38am

Carp, what do you mean "try and work with the gas company" you mean play nice? or should they play nice... so far i dont see any evidence of O&G companies playing nice, but they always expect us landowners to play nice... they say "trust me, we wouldnt do that" ya right... if it aint in writing, they dont play nice, and sometimes even if it is, they have their high powered attorneys try to wiggle out of something just because a comma is misplaced, or a word misspelled... thats not working with the land/mineral owner... maybe thats what we should be calling ourselves "mineral owners" instead of land owner... it just sounds more authorative i believe.. more later

 

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