Royalties

Does anyone have any info on the roylaties being paid? I have 16 acres and have been offered six thousand dollars a acre to sign over my roylaties. Just wondering what to do.

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Permalink Reply by Clinton44 on March 28, 2012 at 7:27am

What State, County Twp. are you located in?

Permalink Reply by Clinton44 on March 28, 2012 at 7:41am

Careful consideration should be undertaken before selling royalties, such as is active drilling going on in your area, have any permits been pulled for wells in your area. Even small amounts of acreage within a drilling unit can be profitable over time... 

Permalink Reply by take the money and run on March 28, 2012 at 9:19am

I am in Ohio, Carroll County, Perry township.

Permalink Reply by Clinton44 on March 28, 2012 at 9:47am

Ok I know from other discussions on this forum that there is a lot of activity in Ohio, due to the drilling companies going there after wet gas liquids and oil that exist in certain parts of Ohio in the Utica Shale  don't know if any activity is around you. Hopefully some of the Ohio people on the forum will chime in wth some advice for you as to if you are in any areas of activity. If you are I would think twice before selling out!!

Permalink Reply by Babs on March 28, 2012 at 10:01am

Chesapeake is highly active & aggressive in Carroll County and is looking to tap every acre I am told.   We have pads being set up surrounding my area.  TSG aka Cougar have been knocking on peoples door daily for seismic testing to find the best placement for the riggs.   There are 49 permits from the ODNR to drill Utica shale alone in Carroll County which leads the state so far.  I've noted some early production numbers on oil being produced in my previous comment.  Hopefully this information helps.

 

http://shale.typepad.com/utica_shale/carroll-county/

 

Permalink Reply by Olive Sue on March 28, 2012 at 1:11pm

Really?  Are you just testing here??  People are getting near $6,000 for leases.  Do you have an old lease thats worse than awful?  I can't imagine selling royalty where you are.  What percentage of royalty do you have?

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on March 28, 2012 at 11:11am

Don't forget that you don't have to sell all the royalties...it can be in percentages..that way you still make money monthly also.   And I am glad that other members have showed up to give some comments ...but utica shale is right about having a personal help and not just rely on the members here..    but be glad we care also.

Permalink Reply by Anonymous on March 28, 2012 at 11:57am

I am also in Perry Township.  We may  be neighbors.   There is one well drilled waiting to frack.  Another being drilled right now and a new pad being made even as I type this.  All of them are in sight of my house.   Personally I would not sell royalties for a couple of  reasons.

1.   If someone is willing to pay $6,000.00 now, they expect to get more over time.

2.   If you sell your mineral rights what kind of control would you then have over your surface rights?

These are just two I can think of off the top of my head.

If I were you I would wait and see what happens.   I guess it would also depend on how good your lease contract is and if it's and old one or new.  

Just a few thoughts.  

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 28, 2012 at 12:40pm

I suggest you check out some of Little Cougar's posts regarding this subject. I expect you are soon to be included in a unit and have just experienced your first shark siting.

Permalink Reply by melissa humphrey on March 30, 2012 at 1:49pm

it varies widely and is subject to how long the wells have been producing how mny new wells

will be drilled.

But generally 6k isn't bad thesedays.

generally, keeping them will pay out lot more.

 

which twp?

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 30, 2012 at 2:36pm

Unless you have one foot in the grave and the other on a banana peel (and don't give a hoot for your heirs) , why would anyone even consider taking a "lump sum settlement" for their royalties that amounts to pennies on the dollar?

If you take the offer , don't get too sick when you discover what you are missing out on as there are other gas & oilbearing strata yet to be tapped.

There are folks getting this much per acre from Oil & Gas Companies JUST TO SIGN A LEASE! And will get up to 20% royalties to boot. All I can say is : Listen not to the snakes and RUN FORREST RUN!!!!!

By the way , if you are interested in some beautiful oceanfront property in Western PA , I may be able to help you out..........:-)

Permalink Reply by Frank Walker on March 31, 2012 at 1:21am

Glenn without question your instincts are correct.  But your writing also reflects a certain measure of youth.  It's always important to remember we all are different.  There exist small numbers of persons for whom a sale today might make sense.  For example:

Not everyone has heirs that matter to them.  And some folks are at an age where they might be reluctant to wait out the current NG bear market.  Other people, even some younger folks, might have made mistakes in their lives so grievous that extrication now from a horrid situation trumps future riches.

I concede these situations are very, very, uncommon.  This is why your fundamental thesis is valid.  But still, in rare instances such situations do exist.  And for the unfortunate individuals in those situations, outright sale now might make sense.  

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