I'm currently getting bids to sell our minerals rights in Marshall County, WV. We have 42 acres, but counting the other owners, we have a total of 105 acres. Who do we contact at CXenergy? How do we obtain an agent to discuss this topic?. We do not own the top land. We are in the Franklin District, directly over the Marcellas Shale area.
We are in the Franklin District, directly over the Marcellas Shale area.
Marcellus and Utica, probably Upper Devonian too. IF you sell better get a very good price and never look back! Patience is a virtue.
Yes, Tim, I've heard about the strike in the Utica, which is not too far from us. I'm just afraid of making the bidders/buyers mad or frustrated from me holding out and comparing prices. I don't even know who the best companies are for buying in that area. I'm in touch with Mineral Auctions, Blake Bergstrom and Chad Dillie of U.S. Capital and Energy. It would save me a lot of time and negotiations if I knew for certain the best buyers for that area. My first bid has been $6,000 per acre, with a low-ball of $5,750 per acre.
First I'll say I'm in Pa. East of Ohio and Brooke Counties. Now I'll just put it this way.
Back in 2008 probably would have been lucky to get $4000/acre for those Rights. Had a lease offer for $1000 and 12.5%. In Early 2009 that Lease offer went to $2000 and 16%. Later got another offer for $2000 and 18% form another Company. Signed with that Company in 2010. Best part was it's a Marcellus only Lease.
Ink wasn't even dry and first Company acquired that Lease.
2013 3 wells completed of a 5 well designed Unit. So with lease Bonus and Royalties now have a gross of ~$7000 acre. No Decline on production because of "Choked" Wells. Yes Royalties are down (>50%) because of low prices.
So still 2 wells to be drilled to get that 5 but Downspacing looks very probable. So might be 6 more wells to be drilled (9 total). Let's just ignore the downspacing and 2 more wells. So give it 3 more years (2018) and will have grossed $10,000/acre. Which is about what I might have taken to sell Rights in 2008.
Now along comes Utica and that looks to be "better" than Marcellus. Than under Utica is Trenton waiting to be tested.
So it will take 10 years to get my $10,000 but those 3 wells will still be producing with 2 left to be drilled, deeper formations waiting and that sweet Upper Devonian.$10,000/acre would have been outright theft. LOL
Very informative. I do know that testing and drilling has dropped off because of low oil/gas prices and that the expected recovery across the board might take from three to five years. I'm in my 60s and I might not live to see it. Just had a crippling pulmonary embolism--a deathly serious one. My sister is deep in dept. So this appears to be the answer. But, I do appreciate your advice about easy does it and wait it out for the best possible results. I'd like some competition for the rights, without putting a gun to anybody's head. Respect for the buyers is very important to me. As well as their patience and reciprocation.
Contact WV Lawyer Jeff Rokisky. Do an internet search and you find his offices and phone numbers. He is licensed in PA, WV and OH. He has the best approach for determining Mineral Values, then selling to the highest bidder of 25 or more companies. This info is 2 years old but probably hasn't changed.
Saturday on AM 1170 Radio at 9 or 10 am you can listen to 2 of his lawyers discuss "Your Money" including Oil & Gas.
All 3 are on TV/Reruns on Channel 9 Steubenville at 10 am or thereabouts, after MEET THE PRESS.
just remember those nice sweet landmen are just salesman working for the company that is trying to buy your mineral rights and what they say is all for the good of the company ......NOT YOU if u must sell remember you are setting on an energy source greater then Saudi Arabia WITH A POTENTIAL OF MANY YEARS OF INCOME having 3 plays under you u should not be satisfied for anything less then 10,000 an acre and hold a percentage of the royalties for future income and you should have an oil and gas attorney review any documents you sign........and an oil and gas attorney that understands what is going on also you need to look at the amount of taxes you will be paying on the sale of your mineral rights.....probably 30% or more .....so 10,000 turns into 7,000 right a way...dealing in these large of a sum of money you also should talk to a good tax accountant to see where u stand on taxes for your windfall
Mike, I've heard that all but seven states charge tax on an inheritance. WV is not one of them, so I think we're okay there. It's when we invest that money into a venture or business or make a purchase, when those taxes begin to take effect. My sister's and mine biggest roadblock will be keeping our SSI through this whole thing. We could lose it completely. We have to find a way of sheltering this lump sum away from IRS so that we don't lose our benefits, or else we will be bleeding off the total inheritance state. I've heard about a blind trust, but have no idea what this is or how it would work in our favor. Any other ideas? Tax shelters. Signing the money over to a relative? I might goggle that property attorney pronto, and these bids start to come in.
if you inherited the mineral rights you now own them the inheriting is over you now have to pay taxes on any money u receive just like any other mineral owner ........you better talk to an attorney ........you will be taxed and a pretty big chunk between the federal and the state ........you need a good accountant so you understand what you have .......that money is not being paid to the estate it is being pated to you and your sister so you 2 will be responsible for the taxes of 30% or more the estate is over you now own the rights
If you get the wrong producer you won't have much to be taxed on.
Some producers have arrangements to allow them to only pay what they want.
When you get $15 to $150 an acre per month, you would have to own a very large chunk of land to have any significant income.