Offer to purchase mineral rights

Today we received a letter from BCF Minerals.  They are offering quite a lot to purchase our mineral rights which is in the Brinker Storage Field.  We have just over 22 acres, they are offering $96,894 valuing the minerals at $4,200 per net acre.  That seems rather strange they would offer so much when there is a good chance they won't get anything out of this, does anyone else find this a little strange.  Of course I am not selling to them but just wanted to hear if anyone else has had a letter like this.  Things seem to be heating up in the storage field.

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Permalink Reply by bo boboski on August 30, 2013 at 7:51am

Absolutely,  do not do it!

Permalink Reply by Dennis J on August 30, 2013 at 8:58am

You mean in general or just not with BCF?

Permalink Reply by Kathleen on August 30, 2013 at 10:44am
Hi,

I'm leased and still have received those letters multiple times. One time they send a big packet down playing the whole Urica play, which said, sell us a portion of your rights to lesson your risk.
They used newspaper articles highlighting any negative words about this play.
I've also read here, once you call, they lower the offer.
Permalink Reply by Dennis J on August 30, 2013 at 12:03pm

At this point I have no lease and not sure if I will  lease. I've been gathering information and frankly it is so confusing, it's like our new healthcare plans.

Permalink Reply by ML on August 30, 2013 at 10:33am

It appears these companies are planning to make a lot of money on these deals.  Depending on your current financial needs it certainly seems wise to resist selling at this time.

http://www.timesreporter.com/newsnow/x511617905/Carrollton-could-se...

If I am reading the article correctly, paying $555K to get $2.2M sure is a good deal for the company purchasing the royalty rights.  But I guess every situation is unique.

"CARROLLTON —

Village Council plans to sell one-fourth of the village’s 20 percent  gross profits from its oil and gas leases with Rex Energy to Gateway Royalty for  a one-time payment of $555,000."

"The company has estimated the lifetime value of its royalties from the village  is about $2.2 million." 

 

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