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?
One word answer:
sell when you can, not when you have to.
Buying and selling any commodity is a decision based on supply and demand. Without knowledge or expert advise we are left with our own best guess. My advise is to educate yourself or contact a company that represents land owners.
I still get offers intermittently, however I do agree that they seem to have tapered off since the spring/ early summer; I wonder if the buyers feel they have gotten the easy pickings shocked by the drop in oil prices and are waiting to see where things go before spending more money on advertising.
Not all of Guernsey County is of interest to buyers. One company, that I am aware of, only wants properties in the southern half of the county. My question to you is - are you interested in selling or do you just want to feel special by having companies make offers for your interest? If you have refused offers before, it is likely that you have been identified by legitimate companies as someone who is not interested in selling. By now you, and the fly by night companies that send flyers in the mail or pay for a few signs they can illegally post on a telephone pole, must realize that those efforts are futile, and so the number of mailers has decreased. There are still companies that are interested in buying minerals, but they will not waste time and money soliciting in areas that they are not interested in.
Offers follow the market. There is a direct relationship between price and value in this case. Thus, any offer is likely to be much lower than previous offers. OTOH, there are some folks who put together larger tracts to flip to investors who want to invest $5 million or more in one transaction. They are sending out offers, often very high offers, trying to get enough to sell so they can meet that threshold. But if they don't meet the threshold, they tend to withdraw the offers.
The volume of offers has likely been very much reduced - for some, they simply have reached their maximum risk level. Further, many offers are concentrated in areas where they know drilling is being proposed or permitted and thus with fewer permits, they are not in ahead of the drilling trying to buy up land.
Thanks Larret, My land is right across I- 70 from 2 AEU drilling sites... AEU also holds my lease which expires in 1 year... I am evidently not in a "unit" yet....
Our Cheasepeake lease ran out on the 1st of September. Our agent said the Cheasepeake is not investing money right now. The reason: market is down. We're in Brighton Township, Beaver County.
Is that in PA. or Ohio
I would demand a release of your acreage if they don't want to keep it. When the market recovers you can ask for more. What was your signing bonus? Ours was 5k per acre. 1 year later my brother got 62k per acre. If they don't renew your lease, make them release your land back to you....
Hello Lance, We're in Western PA. What do you mean release of acreage? Once they don't renew, isn't that the end our our business relationship? When I spoke with the rep this week, he referred me to a few sources that might be interested in leasing. To me, once they didn't renew, they have no more rights and if they would want to lease again, we start over. Am I missing something?
You ask them to file a Release of Lease so that when another company runs your title they see that you are no longer under lease. Technically you're free once they choose not to renew, but a Release gives public notice of that fact. Make them do. Trust me, it's worth it.