I have been getting offers to sell my mineral rights. Last night, I had an offer of $12,000 an acre.  I said I wasn't interested.  But how do I determine which will get me more money--mineral rights or royalties. First of all, I have no way of knowing how much royalties would be if I were to get in a unit. Is there a range of amounts for royalties? How much per acre?  I also heard that these fracked wells have a life of about 7 years, with a dramatic drop off in productions after the first year. Comments?

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Helloooooo......where are you..............

Susan, you need to give us full location.

I am in Londonderry township in Guernsey County.

Hello Susan,

   I keep reading of offers to buy mineral rights of $12000, $13000, even $15000/acre to buy mineral rights. So far I haven't been able to find out any companys that are making these offers. Can you tell me who made you an offer in this range?

I have it written down at home (I'm at work)--I think the name of the company was Buckeye something and they are from PA.  I can look it up if I remember.

not sure how you turn 12K down but ya got HUGE stones susan...i know i couldn't ....hope ya get 14K...

Because selling my mineral rights is permanent.  I won''t do it unless it's a phenomenal payoff.

I had to have two stiff drinks after I turned him down LOL

Susan;  they would not be offering that much if your chance of getting in a drilling unit real soon wasn't a good chance. I heard that Gulfport and American Energy Utica will be sending multiple  rigs to that area real soon. I wouldn't be surprised if that "Buckeye Co." wanting to buy your mineral rights isn't an offshoot co. formed by one of those two drillers to get out of paying any royalties. Still.if not, you could expect at least $1500.00 per acre per month from that area.Maybe more. Lots of Oil & liguids there.  20% gross royalty in a 160 acre unit. With 4 wells per pad ,just multiply by that by 4!   You do the math. If I had lots of $$$ to invest, I"d be buying all the mineral rights I could get in Guernsey County!

I am a little confused.  So what might be my royalty price per acre if I have 52 acres in a 640 acre unit?  Good point about Buckeye possibly being an offshoot!

Somewhere from $700.  to $1,000. there are sooo many variables and don't know what the choke will be, and whether or not they can get to market and sell everything or not.  don't know your royalty %. Usually, round here. those mineral buyers will get their$$$ back in about a year ,or less!  That's with one well. Just think if they drill 4 laterals in that 640 acre unit! 

Susan, selling royalties can be twisted several ways. You can sell off royalties on a per well basis, you can sell off a strata, ex marcellus or utica, or you can sell it all. Usually, if you sell off royalties on a per strata basis it wont change the offer by much, and you can hold on to the rest to see what the future brings. Selling royalty will make you more money cause you have more options. But a proper in depth evaluation will be needed to see what the best course of action is. 

Susan I was contacted by the same company this week and the offer is about the same. It's Alot of money and hard to turn down.  I am in a unit already in Guernsey County so this makes it harder to wanna sell some of it. But I am with CHK so that kind of trumps my last sentence if you know much about them..

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