Current rates for Selling mineral rights?

We have acreage in union township and have been approached to sell all or part of our rights for about 7000 dollars an acre. This is quite a bit more than other offers we had received. Can anyone tell me if this is a good offer? Any suggestions for how to proceed would be appreciated.

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Permalink Reply by w. k. chirpas on December 9, 2013 at 12:31pm

This offer came from a group of mineral buyers that has an office in             St Clairsville, Ohio.  Their local representative offered a little less than $10,000 per acre. The higher offer cam through the attorneys in Canton that did the lease.  The offer for $14200 was from the same company, but came directly from their Texas office.  I named the firm once before and this web sight deleted it. 

I also have a confidentiality restriction with the law firm.  But they are the premier oil and gas lawyers in Canton.

Permalink Reply by brat on December 10, 2013 at 9:41am

w.k.

  I too am looking to sell some mineral rights in Harrison cty.  Wondered which part of the county you are located?  Also curious if you give mention the attornies fees or costs for the transaction.  Thanks

Permalink Reply by w. k. chirpas on December 10, 2013 at 1:55pm

I am at the corners of three townships  Moorefield, Athens, and Cadiz. This off of Old Piedmont Road and tracks back to route 22.

 

The attorneys want 4% the other offer was directly from the company looking to buy the rights.  If I do a deal I will employ a lawyer to confirm the funds of the offering party. 

 

But again I am not inclined to sell.

Permalink Reply by brat on December 11, 2013 at 4:45am

Thanks w.k.   much appreciated.  Best of luck on the offers.

1xc6tw2xj1fwlPermalink Reply by 1xc6tw2xj1fwl on December 9, 2013 at 8:41am

Bulls win.  Bears win.  Pigs get slaughtered.  

Permalink Reply by Philip Brutz on December 9, 2013 at 12:11pm

From the Motley Fool

http://wiki.fool.com/Bulls_make_money,_bears_make_money,_pigs_get_s...

"Bulls make money, bears make money, pigs get slaughtered" is a pretty simple saying that conveys more than it first appears. Its meaning is simply this, do not let greed affect your judgment. While this is simple its applications are many.

There are several ways the stock market punishes excessive greed. Among the ways the market punishes greed is through churn caused by commissions. The mere act of buying and selling can rack up huge costs for investors, including lost performance due to loss of capital and higher taxes (the federal gov't counts each transaction you towards your capital gains). Thus as Warren Buffett has famously advocated the ideal holding time is forever, as you never incur transaction or tax costs.

Another way the market can punish greed is through unreasonable expectations. An investor who is doing well might expect to do even better in the future ignoring reversion to the mean. This may cause the investor to hold onto stocks past the optimal time to sell them or overpay for new holdings. This mistake commonly occurs in bubbles.

A third way the market can punish is by those who chase performance. Investors who buy what has done well recently (hot sectors e.g.) can often find that they underperform the market. Yesterday's biggest winners are often not tomorrow's.

As you can see greed kills, it can kill an investor's returns by making them act in haste. The best investor is the one who is intellectually flexible and dispassionate in analysis when it comes to investing. As Warren Buffet has said the critical determinant in an investor's success is not intelligence or skill but temperament.

Permalink Reply by maag man on December 9, 2013 at 5:25pm

thanks for sharing..  great advice..  and the supposed good lawyers in canton..  sure.. they may think they can get you a deal to close in 120 business days..  that is after they attempt to sell that asset to someone who hopes to sell your asset again some day..   how many of those lawyers in Wooster, Millersburg, New Phili .. are all NOW oil and gas lawyers... for a percentage.. right..???   Why Not instead  work with a viable drilling company that is currently  making all the right moves to perform..  or   like that company that is drilling the village of Caldwell... while financing many of the major players in the Ohio Valley.

Wouldn't you think that if a company has to borrow money to lease.. that they would then have to borrow money to drill... ?.

There aren't many companies out there that don't have to borrow money or sell something to perform.....  friend me for more info if you wish..

 

Permalink Reply by scott peterson on December 10, 2013 at 2:19am

My offer was with earnest money upfront and closing in 45 days. Go away Mick, everyone here knows your background & history.

Permalink Reply by jonathan M. on December 9, 2013 at 9:43am
Wk. what company made the offer? Thanks
Permalink Reply by w. k. chirpas on December 10, 2013 at 2:34am

I don't think I can name them on this forum, but even though considered it to be an iron clad offer it was sill on the flat side for me.

Hope this helps.

Permalink Reply by jonathan M. on December 10, 2013 at 4:34am
Thanks wk
Permalink Reply by jonathan M. on December 10, 2013 at 10:32am
Wk,

Are you currently under a planned well?

Thanks

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