Have offers to buy mineral rights stopped?
I don't know about anyone else but it seems all offers to buy my minerals have stopped. I was getting at least one offer a week to buy my minerals here in Wills Township in Guernsey County. But I have had none in the last month and a half... What's going on? Has anyone else experienced the same. I know oil prices are down but it seems that the mineral rights are still a valuable commodity. Are they running out of money or what?
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Replies to This Discussion
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Permalink Reply by deutchen on
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I sold half my minerals before the market dropped out when most people on this site were yelling "don't sell. Only an idiot or someone about to go bankrupt sells their minerals". Now I'm really kicking myself in the butt. I should have sold out 100% before their value dropped so low & may never recover. The way drilling has slowed to a crawl, companies going bankrupt & royalties dropped I'm happy I did at least half though.
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Permalink Reply by rmc on
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I hope for you're sake that they don't file a partatian suit with prices for mineral rights dropping like a rock and all.
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Permalink Reply by Tim on -
Thank you for expressing a real life point of view, which runs counter to many of those who claim any buyer is 'trying to steal' their minerals.
OGMs are an asset class just like any other, and like other asset classes, emotions tend to run high. However, buying and selling minerals, is always a decision for the owner, based on their OWN financial situation, which can and usually very different from ever other OGM's financial situation.
Thus, giving advice in a vacuum, is always dangerous.
There are still buyers around, in the 'fairways' although the appetite for mineral rights outside of the primary fairways has dropped off considerably.
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Permalink Reply by scott peterson on
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Kicking myself too as I turned down a legit 19,000 acre offer last year...hind sight is 20/20!
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Permalink Reply by Mark Patrick on
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We are getting about one offer a week to sell our rights in Hanover Twp.Washington county Pa.They usually do not include price per acre but some offer 5000-7000 per acre or more depending on contract terms.We are in a unit that has a well on it but is not in production yet.We are currently getting a pretty nice shut in payment per month as my 5 year lease is up.We had a 18 month limit for shut in written in the contract with only two months left on it.It should be real interesting what will happen here if the shut in term expires as they have not offered me a new lease yet.Iwould think if they were not interested in our property they would have dropped the shut in payments already. I have some thought they may be trying to buy our rights through one of these companies.We will not sell our rights and will let this play itself out and see what happens.
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Permalink Reply by Ken Barton on
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Shut in refers to a well that is in production, but the production and sale of the oil and/or gas is temporarily halted, usually because of low prices or maintenance of the well. It is a temporary payment made to keep the lease in force while no royalties are being paid.
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Permalink Reply by Mike Murphy on
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That 18 month limit on shut in payment means after 18 months the producer does not have to pay a shut in payment ........you will not see a new lease because they have already drilled on your lease '''''so in 2 months you wont get shut in payment but you are HBP
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I don't think that is written in stone, Mike. Wouldn't the outcome of the post shut-in clause be determined by whatever fine print exists after that?
If it's not that's another fine item to be included in leases yet to be negotiated.
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