Price for Mineral Interest in Meade District, Tyler County

I inherited a 1/4 interest in 185 acres of mineral rights in Meade District, Tyler County WV.  I have been approached by someone to purchase it for about $1000 per acre.  Is this a fair price?  Seems low to me.  I have been told by the land owner that there is a 5 year lease with Antero.  Should I sell or hold on to?

How do you go about leasing your rights?

Thanks for any info I am in Colorado and was a bit surprised by this inheritance so I am trying to figure it all out!

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Permalink Reply by Clinton44 on April 10, 2013 at 9:56am

Hi Katy,

If you inherited the interest and there is a lease already in place you are bound by the terms of that lease and your rights are already leased.

I would not sell your interests without doing extensive research, for instance is your acreage already in a producing unit? if not, is their active unitization/acreage pooling going on? Is there active drilling  in the area , pipelines going in? Apparently you are in contact with the other interest owners that  live in the area  can they fill you in on what is taking place??  

 

Permalink Reply by Clinton44 on April 10, 2013 at 10:00am

Or is it the other interest owners that are offering the 1000 per acre??

Permalink Reply by Katy on April 10, 2013 at 2:17pm
Thanks for your reply. Yes it is one of the other interest owners. My brother and I own 1/4, my aunt owns 1/4 and the guy offering to purchase owns 1/2. I believe there is already 3 oil wells on it but they must not produce much cause royalties are minimal. I am thinking Antero is going to frack for natural gas so I am thinking royalties may increase over time. Does that sound feasible?
Permalink Reply by Nancy Mosley on April 10, 2013 at 2:28pm

Can you get a copy of the lease? Does your aunt know anything about it? If you know the company (you would know, if you are being paid) you could ask them for a copy of the lease. There is a lot of activity in that area, at least in that district, and very likely the company is planning on drilling a Marcellus well which might require more acreage and thus an increase in unit size. 

$1000 per acre is low for a bonus payment for increasing the unit size, I think, even more so for purchasing. 

Permalink Reply by Clinton44 on April 10, 2013 at 3:13pm

Not sure I don't know much about oil wells, but it is reasonable to assume that they would want to tap the shale whether it be the Utica or Marcellus with some horizontal wells.

Maybe the guy offering the 1000 per acre knows more than he is letting on? How well do you know him is he related to you or any other of the interest owners?

Do some of your own research call Antero see if they will clue you in on future drilling plans. If the gentleman offering to buy you out really wants your share he will wait, maybe even come back with higher offer if you indicate that you are investigating all your options..

 

 

Permalink Reply by Land & Mineral Management of App on April 10, 2013 at 10:09am

Hi Katy, a lease group is forming that will include Tyler County. If you are interested please call me at 304-545-7644 or e-mail me at tgreene@landandmineralmanagement.com.

 

Tim Greene

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