I have recently been offered the purchase of 43 acres of mineral rights for $25,000. I live in Ohio (Carroll County) with mineral rights on 3 Clinton wells...one capped and the other two in very low production. I am tossing up whether to purchase these mineral rights. It would be a no brainer if I knew oil and gas drilling would be returning to my area but I am uncertain if this is going to happen and unsure if I want to waste $25,000 when I could be using this for something else right now. Does anyone have any speculation on if drilling will be returning in the next few years or if this price is reasonable?
Barbara, who is the company offering this?
It's all about whether or not Encino ,who bought Chesapeake, will be drilling . Last I read about them is they plan on having multiple rigs running.
unless you are desperate a bad move to sell your Oil and gas rights for just that amount. Encino says they want to drill. we have several more gas power plant plants in the works and there is the huge Shell Cracker plant and another in planning. seems like demand will go up. if you really need the money maybe a family member will invest in your minerals especially at the price you are considering 1 jeez they could get their investment back after just a few months (if that) of collecting royalties. you also should think about possible devaluation of of the overall value should you severe the minerals from the surface. Just things to consider. Good luck.
Please excuse me if I missed something. It appears as though she is trying to sell 50% of the OGM rights only, as the other 50% are owned by Gateway Royalties. I will assume these are undivided rights, which means no owns a particular 43 acres, rather an undefined half of every acre.
I am a bit confused by the 3 Clinton wells; are these on the property in question, or are they already drilled on other land you have. If it is the former, these rights must already be leased and HPB by the producer of the Clinton wells.
The price quoted is $581 per net mineral acre....that to me sounds too good to be true. While I know nothing of the E&P activity in your area, if the attorney finds the rights are in fact available to every depth with no lease in force.....buy it as a long term investment or to pass to your heirs....good chance it will be produced some day.
If there is no lease to HBP, and even if it takes a few years.....the bonus amount for leasing will be at least 2-5 times that....without considering any royalty. Pretty good return, if you have the cash and wish to gamble a bit.