Selling Mineral Rights

Hi, has anyone been approached with offers to buy your mineral rights?  We just had a very lucritive offer from a company ..... $5,000 per acre.    Just wondered if any other have had such offers. 

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Permalink Reply by Mickgyver on June 26, 2018 at 7:30pm

Back in 2013 THEY WERE OFFERING 15,000 TO BUY THE MINERAL RIGHTS ,in Belmont County Chesapeake was leasing for $50 to $-6000 or so an acre and they sold a lot of leases to Total of France for $20,000 per acre .

NOW with oil prices lower they are offering less, My last offer was $6500 per acre but it is important to know what is supposed to be under you. In ohio belmont county ,when the cracker plant comes in the prices will probably rise again when the plant produces all the various chemicals and the additional plants it will attract to make and produce various derivatives then our area may offer substantial long term royalties . But then again as everyone says your individual situation with a bird in the hand could do you better now than later. Good luck

Permalink Reply by Jeffrey Beunier on June 27, 2018 at 4:25pm

cracker plant will only be relevant to the wet gas/ngl areas of the play.  A large portion of Belmont county is dry gas.

There could be a slight derivative effect due to the consumption of wet gas, but the plant could also result in the increased production of the wet gas areas, thereby driving dry gas prices down as the operators are able to make up the economics through the NGL stream

Permalink Reply by Jeffrey Beunier on June 27, 2018 at 4:45pm

Michael  sorry your thread turned into a soap opera.  My apologies.  Depending on your lease terms and the location of your minerals, $5000 to sell is probably low if you are in one of the good parts of the Eastern Core Counties (Belmont, Monroe, Jefferson, Harrison). 

Permalink Reply by Mitchell R Holliday on June 28, 2018 at 5:25am

Jeffery,  we are in Allegheny County, Pa.   Most of the comments I read are from Ohio land holders. 

 I have contacted 2 other buyers and have received offers of $5000, $7200, and $3350/acre.    I've called my lease holder and asked for a meeting to discuss this situation.  Be interesting to see what they have to say.     It is somewhat important to know we are 80 yrs. old and could use some $$ to put a new roof on the house, buy a better car, etc.    The way to go for us might be to sell off a portion of our mineral rights and keep the rest.  Still totally undecided.  We met with our kids and they basically say "It's your property ... do what you feel is right".    Rest assured that I'm not one to "jump" at any offer.  I research as much as possible before making decisions. 

Permalink Reply by Jeffrey Beunier on July 1, 2018 at 4:51pm

Allegheny County is a whole different beast than Ohio.  You do have the potential for 'dual' horizons (Marcellus and Utica).  The Utica is very deep in Allegheny (it actually dips as you move west to east across the basin).

PA has multiple websites that can help you gain an understanding of "what's under you", you may have already visted some of these, but in case you haven't I hope the links below help.

http://www.marcellus.psu.edu/index.html

http://www.marcellus.psu.edu/resources/images/marcellus-thickness.gif    

http://www.marcellus.psu.edu/resources/images/utica-thickness.gif

At the moment, most operators are not pursuing the Utica in Pa due to the cost, however there will be development in the future.

Here's a bubble map of HZ wells in the Ohio River Valley, the size of the bubble is based on the first 6 month's BOE (Barrel of Oil Equivalent) - I used 6 months as it includes the widest range of data points.  The color is the formation. bright green is the Utica, Red is Marcellus.  The yellow diamonds are permits filed within the last 12 months:

Some of the best of the Marcellus actually sits under Pittsburgh.  Great Rock.  I'm not sure if you reviewed Range Resources presentations over the last few years, but they calculated GIS (Gas in Place) across a wide swath of the area.  They also put out a presentation on the Utica in 2015 attached below: 

RRC%202015%20Range%20Resources%202015%20Sun%20Trust%20Utica%20July%...

Range Resources most recent presentation is attached below.  They do provide some good insight

RRC%202018%206%20June%20Company%20Presentation%20-%20June%202018.pdf

Penn Energy has acreage north of Allegheny and included some decent maps in their 2016 and 2017 presentation attached below - (good info starting on slide 9 and 6 respectively)

PENN%20ENERGY%20RESOURCES%202016%20-%20DUG%202016%20Final.pdf

PENN%20ENERGY%20RESOURCES%202016%20-%20DUG%202016%20Final.pdf

EQT's most recent presentation follows (although there is not a huge amount of info included) link is below:

http://ir.eqt.com/sites/eqt.investorhq.businesswire.com/files/doc_l...

Please keep in mind, operators tend to be rather bullish in their presentations as they are trying to sell stock, but overall you can use the presentations as guidelines.

as you may have seen scatter through some of the other discussions, the value of your acreage will depend on a number of factors - geology (I think that most of the county is sitting over great rock), Operator, TIming, lease, etc - those are unknowns, but I would be happy to take a closer look at you specfic area if you want.  I will even promise not to make an offer on your assets so we don't have to hear all the rhetoric froma  certain person oin this site about soliciting and biased analysis - think of it as an apology for your thread being hijacked.  If you would like me to help you in anyway, please don't hesitate to ask, PM me or friend me or just ask on here.  I am happy to help as time permits.    Do you have a good attorney?  I know a handful that maybe able to help you with any dealings with your operator or any buyers. 

Permalink Reply by Mitchell R Holliday on July 3, 2018 at 5:29pm

Great Response ....... thank you.   Those are some good sites to reveiw.  

Permalink Reply by David Allen Lilly on June 28, 2018 at 9:23am

"soap opera"

You have zero credibility.

There's your soap opera.

Permalink Reply by deutchen on June 28, 2018 at 2:17pm

I found his posts to be very credible &  informative.

Permalink Reply by Bullfrex on June 29, 2018 at 12:36am

Agreed  deutchen.

This is an asset to be managed, not unlike a stock portfolio. When your life circumstances dictate, you sell or buy as your needs and research direct. Selling is a viable and sometimes necessary option, and all the information you can gather helps bring the best return possible. This includes info from the 'enemy' LOL.....those who will buy your asset.

If you can meet your needs by selling a portion of your asset, so much the better.

Every willing  seller needs one thing....a willing buyer....this is the only way it works!!

Thank you JB, for your informative contributions to Mitchell's questions.

Permalink Reply by Jeffrey Beunier on July 1, 2018 at 5:08pm

Thank you both, I'm happy to dig into any questions you may have as time permits. 

As for David, simply click on David's name and review his posts going back through 2015...he makes the same statements over and over, calls people stupid (indirectly of course), tell people they are circus clowns, etc.  He has a right to voice his opinion, and obvious in his mind, noone that has a differing opinion is remotely correct or credible. He apparently believes that all buyer are crooks and based on his 'math' he believes that any offer is a rip-off by wealthy elite trying to steal from the poor and ill informed.   

David seems to troll this website for no other reason to be helpful because as he said 'he's just a guy posting on a website',  I really am not bothered by his personal attacks, or his opinion, it owuld be one thing if he could engage in a conversation, but his chosen path is to attack people, throw insults, yet he never seems to provide any supporting data...I did read in 2015 that he spoke to 'very credible people' on a subject....pretty sure he was wrong on that thread too,but hey we all mak mistakes verynow and then.

Permalink Reply by David Allen Lilly on June 29, 2018 at 1:58am

Of course you did, you sold your mineral rights too. 

Permalink Reply by Jeffrey Beunier on July 1, 2018 at 5:42pm

and your point would be.....

oh someone disagreed with you so they must not have a relevant position...same old same old..

I think the following post sums up David, in his own words:

Permalink Reply by David Allen Lilly on March 25, 2016 at 7:31am

I am a fighter and always have been. I detest bullies, liars and thieves. My wife terms me "insufferable" when I latch onto some matter or issue, but that isn't always a bad thing.

I have spent my adult life learning to understand things complicated, residential and commercial construction to the level of job superintendent, responsible for everything.

Lately I learned to perform maintenance on high end espresso and latte machines, the service technicians manuals are and inch and a half thick, complicated with a mass of wiring, all manner of electrical components, plumbing, refrigeration and computer components. I covered a service area of 1/7th of the country, and did it well.

I crave challenges and I will learn to read these statements as well, one word, one line, one page at a time.

Plus, I no longer work, so time is available to me, my new job will be managing our royalty income, verifying terms are adhered to and such.

I know this is hard but when we go into production I will be ready. I have been given horror stories on end, assured that I will pay for pipelines and such, that my lease couldn't be very strong etc. etc.

None of it fazes me, Let us stick together and figure this out.

I found this site this morning:

http://www.mineralweb.com/owners-guide/leased-and-producing/oil-and...

This particular site could expand its readership tenfold were it to use its reach to help folks with their royalties.

Soon we will be looking for a great accountant specializing in oil and gas royalties and will be looking for your advice.

Have a good day, keep this all in perspective. Don't let them ruin your day or your life.

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