Replies to This Discussion

Permalink Reply by Steven R. Rothenberger on February 8, 2015 at 3:24am

Tom,
It would be interesting to hear how you proceed and what happens as you persue your valuation and sale, please keep us in the loop. Knowledge is Power!!

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Permalink Reply by Adam Martin on February 8, 2015 at 5:03am

Hi Thomas -

I'm not sure there is anyone out there who will put a legit value on your minerals if you are looking to sell. I'm exploring the possibility of doing the same for my families aprox 645 acres in North Central WV. Those that I have come across are able to take your information; acreage amount, location of mineral, status of mineral (leased, unleased or HBP) and interest in mineral (do you own it all or a fraction). After this, there a very few people in the area who are actualy have money for these types of transactions, typically private equity firms or O&G operators who are willing to purchase. So either the broker has direct contact with these companies or they are looking to offer you very little, pennies on the dollar, and are looking to flip your mineral for their benefit.

I am working with a lawyer from Weirton,WV by the name of Jeff Rokisky. Someone else on this forum said that he is the best individual in the area to sell minerals thru as he has contacts with a few of the top buyers. He takes your mineral info and then sends around, getting these top buyers to bid for the properties, similar to an auction. I've only started this process in the last week so I can't offer any other info as we've only started to send notice that the properies are available. His advice to me was that the proess could take a while and it would also be good to wait as the low price of oil and nat gas will factor into the price offered. Jeff's fee is 6% and you would be subject to Cap Gains tax so selling is not for everyone so seek council and seek multiple offeres. I currently have Jeff and 3 other brokers putting together offers which will hopefully give us options if we do decide to sell.

Hope this helps.

Thanks
Adam

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Permalink Reply by st. croix on February 8, 2015 at 2:38pm

Are you seriously looking to sell 645 acres in north central WV ? Is that not another PRIME location?

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Permalink Reply by Adam Martin on February 8, 2015 at 3:00pm

The majority of acerage is in Monangalia and Marion counties with only about 60 acres in Doddridge Co. It's a little east of the current prime but it is all west of I-79 and will most definitely be developed. Our reason for selling are not because of a need for quick cash but more because of the proposed forced pooling legislation that is soon to be voted on in WV. The state is legally giving companies a way to screw over mineral owners and we'd prefer to not watch our minerals be taken from us for less than we could get if we would sell. When you factor in low acerage bonus, minimum royalties of 12.5%, production costs and the tax of unearned income, we'd much rather sell out and manage the money after paying cap gains tax. Forced pooling is going to reset the playing field and the days of large acerage bonuses, 18% royalties and no production cost will disappear faster than the Governor can sign his name.

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Permalink Reply by Dan Warner on February 9, 2015 at 4:21am

I have started a thread here on GMS entitled 'Forced pooling in WV'.  I ask that you visit it and act on what you see.

It is a tragedy that just the threat of this legislation is causing folks like yourself to consider cutting and running, trading away what likely amounts to potentially millions of dollars in lease bonuses and residual royalty income for pennies on the dollar, out of the fear of this legislation.

I would also like to point out that, in the event that this legislation does get passed, it will likely carry a threshold of surrounding leased acreage vs holdout acreage.  Given the size of your holdings, that threshold would be very difficult to reach.

Though the shape of the tract won't be appropriate, you actually have the equivalent of a drilling unit yourself, therefore, it seems to me that you should be nearly bulletproof from forced pooling.

Please ignore the fear-mongering that you will certainly hear from mineral buyers.  They are only businessmen, not missionary evangelists trying to 'save you'.  They could not care less about you.

Call the numbers that I have posted, express your opinion to them, and consult a lawyer that you trust.  

Additionally, contact your local delegates and express your opinions.                                                                                                                                                                                                    

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Permalink Reply by Adam Martin on February 9, 2015 at 4:37am

Hi Dan -

Thanks for the info. Our acerage is over multiple parcels throught 3 counties; Mon, Marion and Doddridge so not sure the thesholds will keep us from being force pooled. Right now we are only exporling a sale, we have a pretty good idea of what the acerage is worth and will not be selling unless we get full value.

Thank

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Permalink Reply by Racquel Smith on February 17, 2015 at 5:26am

Hi Adam,

If you're looking to get a great idea of the value of your acreage in WV please message me directly as I have contact information for a company who my friend utilized in the sale of her oil and gas rights. This company gave her an excellent idea of the value of her oil and gas rights and helped her understand that their goal is to get a Seller the best possible deal by exposing / marketing her property to their numerous buyer contacts in the industry. They have a GIS tool that contains production data for wells in PA, OH, and WV, pipeline infrastructure, permitted wells, and lessor / lessee information.

She told me they are a licensed brokerage (in PA, OH, and WV) specializing in this industry, had a very transparent process, a reasonable fee that included all costs to close (including legal representation pertaining to the property), and have been the intermediary for many of these types of transactions in PA, WV, and OH. What she liked about them the most was that they made it clear they wanted to provide her with as much information as possible to make a decision on whether or not it made sense to sell based on their valuation rather than just pressuring her into selling.

Thank you,

Racquel

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Permalink Reply by st. croix on February 16, 2015 at 1:11pm

Is your governor a democrat ?

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Permalink Reply by Oil & Gas on July 22, 2015 at 12:04pm

Adam:

Was Jeff successful in finding you a fair market deal?

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Permalink Reply by Adam Martin on July 22, 2015 at 2:07pm

Jeff's advice was that while the market is soft for Oil and Gas with companies cutting back on CapEx and rig counts dropping, my family should hold tight and wait for prices to rebound. That may be 6 months and it may be 2 years. We are in no hurry to sell and he said that the property we hold is quite valuable and to sell now, during a downturn, would not be wise. My family agrees but we continue to actively negotiate on leases for a few of the parcles where we can get the price and terms we are comfortable with. Another advantage to waiting, in addition to the price rebound, is the report that WVU participated in, releasing details on Uticia shale and it being a large dry gas shale play that will be produced for years to come... as Uticia wells are drilled in WV and the production numbers become public knowledge, it may mean added value to our 645 acres.

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Permalink Reply by Dave Buchanan on February 10, 2015 at 9:41am

Thomas, please private message me. I would be happy to discuss this with you.

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Permalink Reply by 003ho3nbn6dh7 on February 16, 2015 at 7:48am

Hi, Thomas,

I represent landowners who want to sell mineral rights. I'd be happy to talk to you about this, just shoot me a message.

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