Offers to Purchase Mineral Rights

Just curious...... but I just received a letter from H&M Land and Mineral, Inc (newly formed company in PA) to purchase my mineral rights in belmont county for $8,000 per acre.  I also talked to the landman and he said they were focusing on the Smith-Goshen area. 

 

Anyone else in the S-G group receiving phone calls/letters from this company?


 

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Permalink Reply by James Foster on September 27, 2013 at 10:07am

Except in Ohio that would be a violation of Ohio Law.  Gas may be flared for a limited period for testing the well and also for safety purposes for example at the Mangus well near Salem Ohio the hit a pocket of gas at 800 feet.

 

http://codes.ohio.gov/orc/1509.20

Permalink Reply by Chris on September 27, 2013 at 9:04am

this number is a little far fetched.  A Utica well can bring in anywhere from $100-$1000 per acre per month, the ones over $1000 are definitely the exception and short term.  A well will not produce the same amount for 15 years. No Utica well has been producing long enough to say what they will produce in a 5 year time period.

Permalink Reply by deutchen on September 27, 2013 at 3:06pm

One statistic I'd like to see is unfortunately one that would be very hard  to if not impossible to calculate. That is a persons chances of being included in a drilling unit say in one year, in five years, in ten years. If a person knew how many acres a company held & how many wells they projected to drill a year, they might get some vague idea of what your chances were. Of course there are many other variables that would influence this but my guess is that a persons chance of having their acreage included are slim to none in any given year and probably even within 5 years. All the calculations of possible royalties are pretty much irrelavent if your odds of being in a drilling unit are as low as I'd guess they are for the average person. Just look at how many hundreds of thousands of acres are leased & how many thousands of wells would be required to cover the vast areas of land involved.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 27, 2013 at 4:44pm

This does not seem at all likely.  Running the numbers shows that yes, these wells are great, but saying that they're worth $200,000/ac to a landowner?  There is no basis in reality for that.

Permalink Reply by bo boboski on September 28, 2013 at 11:28pm

I hope y-all realize that a lot of these companies trying to buy up peoples mineral rights are off-shoot co.s started up by the very O&G co.s that have already leased most of the area. So it's like giving you another bonus check,only this time ,you will be getting O% royalties. They are doing it in the areas that will most likely get drill soon. pretty good trick!

Permalink Reply by al raptoria on September 30, 2013 at 6:25am

Friends in Belmont just sold all their mineral rights....and are moving away. We are to the north a county or two and are considering selling a 40% interest in our mineral rights, retaining 60% interest as that might give us up front money at a time when no one is leasing anything in our area anymore (right now). I am nervous about this as "forever is a long time" - does anyone have mineral rights sales agreements they would share? I have never seen one before and want to study to find the best one to compare with the one the broker will likely present to us. We are selling only non-surface Utica/Marcellus Shales but I hear they want to include levels beginning just 150 feet below the surface...we've got water there! Thanks all!

Permalink Reply by Patrick Murray on September 30, 2013 at 10:01am

Has anyone leased land around your area Al?  Which town are you in?  It seems to always be the best decision to lease your rights if at all possible.

Permalink Reply by al raptoria on September 30, 2013 at 1:24pm

South-eastern  Tuscarawas County - not near any town per se...3 miles from Harrison and Guernsey Counties, 5 miles from new Mark West - Kinder Morgan facility south of Uhrichsville - had offers for non-surface leases 1 1/2 years ago but both companies we were ready to sign with pulled out of the area, defaulting on other SIGNED leases - CHK and Lario.  Now we are entertaining idea of SELLING 40% and then jointly leasing it all. I want to see the BEST agreements for sale, I have been studying good lease agreements for nearly 3 years but no offers right now as they are all spread thinly all over the state - we KNOW they will be here drilling eventually but we are trying to generate some funds right now and still keep some royalty interest for down the road, plus some bonus sign-up money too. We control over 120 acres non-leased. Lario swooped  back in this spring and bought up an estate's land next to us on a corner for cheap. Most of the rest is already leased to Enervest and??? whoever they are sleeping with here and now. 

All ideas appreciated. Thanks in advance.

Permalink Reply by J L on September 30, 2013 at 4:46pm

Have you tried to contact Great River? It's worth a shot if you haven't recently...

http://greatriverohio.com/contact.php

Permalink Reply by al raptoria on September 30, 2013 at 6:31pm

Thanks JL - just fired off an email to them!

Permalink Reply by Karla on October 1, 2013 at 4:27pm
Al,
I work on behalf of Gulfport. They are actively leasing in Belmont. Have you been approached by any landmen on their behalf? If not, I may be able to help you in regards to leasing the minerals if you decide to go that route.

Shoot me an email if I can be of any assistance. Hope all works out for you either way.
KT
Permalink Reply by Mark Gordon, RPL on October 1, 2013 at 7:51am

Depending upon your specific circumstances (property location, lease terms, acreage volume, etc.), I may be able to provide you with another option to consider. I'll send you a message with my contact information and will be more than happy to give you a rundown of some of your options. I can promise you that, whether or not you ever elect to sell any portion of your mineral estate, you'll be in a much better position to make that decision once we've had a chance to visit. I certainly hope to hear from you soon!

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