INvestors buying future royalities
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Replies to This Discussion
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Permalink Reply by Clinton44 on
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Pros NONE, unless you are in dire need of the money right away. These companies are speculators willing to put what look like large sums of money up front to assume the risk of waiting for royalties to come. Which they will if you are in the Utica (Ohio) or Marcellus (PA) shale play sweet spots. They will make money that most can only dream about!!
Cons, You will lose whatever royalty perecentage you sign over to them FOREVER, you will forfeit money that most can only dream about!!!
In my opinion think this through very carefully before you accept the golden egg that these speculators are offering. The royalties are where the real money is.
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Permalink Reply by bo boboski on
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If you are old n have no heirs, yea baby!
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Permalink Reply by take the money and run on
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I am in Carroll County. I was offered $7,000.00 a acre for just oil and gas royalties. In what time I was thinking it over, the ODNR released the results of the wells on April 2nd. I received a letter from this company telling me they was no longer interested, due to the ODNR report.
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Permalink Reply by Amy on
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Hess is withdrawing leases in Belmont. Has anybody had a lease accepted recently in Belmont-smith township?
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Permalink Reply by HMMMM! on
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This is a bunch of crap!!! There will be money made of royalties for the next 100 years around here. DON'T EVER SELL YOUR ROYALTIES!!!!!!!!!! $7,000 an acre is a joke, in some cases you will make that in a year or two.....These people know that and are willing to wait, i suggest you wait also!!!
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Permalink Reply by 0i7okn54zwbdo on
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You will not make $7,000/acre in the first year. I get what you're saying but that figure isn't accurate.
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Permalink Reply by HMMMM! on
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FYI....i said a year or two, so if it is 2years $7,000 divided by 24 months is $291.67 per acre per month....From what i've read and been shown in W.VA. that is pretty close...so even if you make half of that it would take you 4 years to make your $7,000 per acre. Gee get 4 years worth of royalties paid to me right now and never get another nickel or wait and have a steady income for decades....HMMMMMMMMMMMMMMMM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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"Cons, You will lose whatever royalty perecentage you sign over to them FOREVER, you will forfeit money that most can only dream about!!!"
That's not entirely true. The royalty only lasts as long as the lease. If you don't get drilled or HBP during that lease then the royalty is no longer in effect. You'd have to sign a new lease with a new royalty and the previous buyer would have no claim to it. So selling a royalty only works for the buyer if the underlying lease gets drilled. For the majority of landowners they will not be HBP anytime soon.
Selling a mineral right on the other hand...
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Permalink Reply by Clinton44 on
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Lets be realistic here do you really think these speculators are going to buy royalties in areas where they are going to lose their investment??
They are going to prey upon people in the sweet spots by dangling big dollars under their noses and feeding them a line of bull that the royalties are years away. Who knows who these speculators are??? They more than likely have inside information as to where the drilling will take place... They might even be companies spun off by the gas companies themselves???
We had two of these companies send large checks in the mail with their agreements to buy half of our royalties. Sure glad we turned them down as we have already made three quaters of what they offered us in royalties in six months time!!!
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Permalink Reply by Clinton44 on
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Also pretty sure they had written in the fine print somewhere that the purchase of half the royalties was for the primary term of five years and any future renewals....
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