Buying Trumbull County

If you live in Trumbull County, Ohio you may have received offers to buy your mineral rights. Those offers have probably been quite low.

Buy low, sell high; Strike while the iron is hot etc. The folks behind these offers are attempting to take advantage of the disappointment of land owners in Trumbull County. Disappointment by the recent actions of BP and Halcon. They see an opportunity to buy mineral rights on the cheap and sell them later for extreme profits when the value of those mineral rights rise.

If someone is willing to buy your mineral rights then it must mean that they see future development coming. My suggestion is that landowners remain calm and exercise a little patience. Development will come.

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Permalink Reply by Joseph-Ohio on July 15, 2014 at 6:15pm

No, not sight unseen but, based on (guessing here as layman landowner must) any proprietary extraction methods, estimating methods accepted within the industry, tests including test flow results, and / or records that either the buyer or seller has at there disposal / in their possession.

The "lowball" $ per acre mineral purchase numbers (not lease signing bonus $ per acre) referenced within your reply (IMHO) seem to me to be very low and there are many others who've indicated they were low in their opinion as well.

Permalink Reply by Barry D on July 15, 2014 at 7:27am

"Cautious Hope"

I like that

Permalink Reply by pat on July 15, 2014 at 7:27am

i hear there is a job for dexter at one of the drill sites, its the head porta-john cleaner.

Permalink Reply by Dexter Green on July 15, 2014 at 3:38pm

Your profile picture features a Confederate flag.  That is my argument.

Permalink Reply by Sage59 on July 15, 2014 at 3:56pm

Dexter, you must be tired. Pat n's pride in the confederate flag might stem from an honorable family history of fighting for their home and family. A lot of good people died on both sides. I've visited the battlefields, it's a profound experience. You shouldn't always assume the negative. You or I may not display or revere it for personal reasons, but he may if he so wishes. There  is almost always more to the story. Get a good night's sleep, and try to come up with more reasons why we Northerners should just give our mineral rights away. 

Permalink Reply by Dexter Green on July 15, 2014 at 4:24pm

Sorry, when someone's comments are as intellectually arid as his there isn't much of an argument that needs to be made.  And I challenge you to find where I said you and your neighbors should do anything with your mineral rights, let alone give them away.  You are entitled to your own opinions but not your own facts.

Permalink Reply by Sage59 on July 15, 2014 at 4:57pm

"Anyone spending $1,000/ac in an area that is at best in an indefinite holding pattern and at worst entirely out of the picture deserves to lose their money."  You set the price. That  per acre price, to me, constitutes giving our mineral rights away, and that my friend is a fact. 

Permalink Reply by Dexter Green on July 16, 2014 at 3:28am

I didn't set that price.  That was a number listed by another forum member here.  And I also made the case that buying was a questionable venture.  I have made no such comments about the sell side nor do I care to.  Selling is a personal matter and it isn't up to me--or anyone else on here--to tell people what to do with their rights.  But as a finance guy I am well within my limits to comment about how buying is a dangerous gamble.  Why that seems so offensive is truly lost on me.

Permalink Reply by MJ on July 15, 2014 at 5:34am

Dexter,

I know someone that might be interested...

Permalink Reply by jason irvine on July 15, 2014 at 12:49pm
There are so many reasons why or why not to lease or sell your minerals. If the offer full fills your wants needs etc...... then you did what's right. The right price for anything is the amount someone will pay and the amount someone will accept.   Stay informed as much as possible. The rest is the future and out of our control.
At this moment it appears that there is no specific timetable as to if and when they will become more active in that part of the play and at the current production numbers of the few wells, it could be awhile. Hopefully technology will change all of that but tech is the hardest to predict when and were. Its all a big gamble right now. As usual I wish the best for everyone and may all your wells be gushers.
Permalink Reply by Joseph-Ohio on July 15, 2014 at 4:19pm

Jason,

There is no specific timetable that landowners have been made aware of by the developers.

Production is controlled by the developer and current production numbers are what the developers report to the ODNR.

The number of wells in the northern tier are the number of wells that the developers decided to develop.

The developers tell us there is a lack of technology to extract the resources.

How much of all of the above can we take as fact and representative of the strength any well or the entire northern Utica ?

How much of all of the above can we take as not necessarily fact and not representative of the strength of any well or the entire northern Utica ?

Yours and my guess is as good as any other northern tier landowner's I think.

I try to weigh my guesses based on all of the other things I've read on these pages pertaining to how other landowners have been treated in this development.

Permalink Reply by jason irvine on July 15, 2014 at 2:46pm
That's what I was saying. We are making decisions on the future which we cannot predict with 100% accuracy. All we can do is make a educated guess. And a large part of that educated guess is production numbers. There is limited data and the data that is available is not promising. I wish it was.

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