Just wondering if there is anything new with Ascent in Guernsey?
My minerals are north of Rt. 22, west of Skullfork Rd., Section 21.
In the K&R Conservation LLC land.
I only own the minerals, no land.
I received a letter from the "Purple Land men" wanting to buy my minerals.
Thought maybe since they seemed interested, something was in the air.
I never answered them and heard nothing from Ascent.
Would appreciate any new news, if there is any!
What was the offer amount ?
A couple of weeks ago I received two letters offering $14,000 an acre for each of our two parcels in Millwood township.
I didn't even consider selling but was surprised at the offer amount although I believe there is no way they would actually pay that amount. It is likely that they are trying to fish for landowners with big numbers that will almost surely be reduced.
Another reason why I don't care for people who wish to buy other peoples money for dimes on the dollar.
Anyhow, the amount offered might be a clue as to if something is happening in your area.
I looked at the ODNR map and noticed that as soon as you leave Londonderry going east on 22 there is a huge hole with no units.
Patience is a virtue, I often said that I would have very much have rather not gone into production on the portion of our property in the McClain unit 2 years ago when prices were depressed. I still feel like long term pricing will increase as the economy continues to pick up steam.
When the trade issues are settles, and they will be, I am sure there will be a significant uptick the global economies.
I hope things are well in North Carolina, a wonderful and beautiful state.
I appreciate your reply.
I did not even contact the Purple Land men back.
There was no mention of the amount they were willing to pay and I didn't even bother calling them.
But maybe just the fact they contacted me says something.??
Yes, there has been NO activity in the area where my minerals are, since signing the lease in Oct. '12.
Yes, patience is a virtue BUT--------:D
If nothing goes down in the next two years, hopefully, I will be leased, again, and that's not bad while I wait for the drilling to start (if ever)!
All is well in beautiful NC and my wife and I are doing great.
Thanks for asking and hope all is well with you and yours.
If you hear of any drilling "rumors" in my area, please drop me a line.
Thanks for the info, David! If you don't mind me asking, who made the offer? I have dealt with Ascent for years, and they have only offered to lease, never purchase. I lean towards holding onto my minerals, but a good enough bid might make me reconsider.
There is no such thing as "a good enough bid". You are getting pennies on the dollar on the low end and maybe 50 cents on the dollar in a great area with a great lease and a unit that your lease is in about to go into production.
Gateway Royalty made the offers.
I wonder what they would really pay, if it is what they offered ?
Thanks, David! I may have to look into that company. If anything, their opening offer ought to be lower than where the price would end up.
It sounds like you should hang onto your minerals! It is not easy to figure out what to do, mostly because nobody can predict the future. If the market is all roses, you don't have any emergencies, and you're young enough to enjoy the long-term income, royalties are probably the best way to go!
Dave in Ohio,
Did you infer that you are leased with Ascent? If you are can you share how they are to work with? Are they fair with the deductions ( I know, is this where I start laughing?) and do they respond when you have questions?
I've had a mixed bag of dealings with Ascent, so I think it really depends on the landman you talk to.
As far as questions/concerns go, a couple of years ago they were making errors all the time, and it would take a long uphill battle to correct them. There seems to have been some improvement since then, but I wouldn't give them rave reviews.
As far as deductions are concerned, every one of these companies is going to squeeze you for as much as they can unless you negotiate a good lease. I have many interests leased by many companies, and the only way you can guarantee fairness is to force it on them by getting it in the lease.
I never said all mineral buyers are crooks.
Royalties are income, not investments like stocks, bonds and real estate. Why anyone would give away income is beyond me. To sell your future income now, at 15-50 cents on the dollar in the hope that you will safely invest it in something that would pay more than the royalty would have paid is just goofy.
Check out the thread just started about Ascent MC man, it might have some information of use to you. I wish we would have been able to hold off Chesapeake two years ago, if we would have been able to wait our royalty during that first year of fantastic production would have been much higher.
I still feel like oil prices will continue to push upward and you may be very happy you didn't get drilled early.