Replies to This Discussion

Permalink Reply by bo boboski on December 19, 2018 at 9:59am

Depends on where your mineral rights are located. What kind of leases do your neighbors have? any producing wells close to you? Do you have a lease? What oil&gas driller has most of the leases close to you?  What your minerals are "worth" and what you can sell them for may be quite far apart.

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Permalink Reply by Sarah Violet on December 19, 2018 at 10:36am

Thanks for replying

Mineral Rights Butler County, everyone around is leased, don't know type of lease everyone has, 2 producing wells across the road from me, I have lease, was Rex now PennEnergy.

I have been researching and studying since I posted this. Looks like the figure I had in mind was pretty close to what I have found so far. Hope more replies will come in though. I like to gather as much info as possible before I make a decisions .

I have to look at tax end of his too.

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Permalink Reply by bo boboski on December 19, 2018 at 10:53am

There are people who may be interested in buying your rights who are not associated with the oil&gas industry. investors. They may pay more since they aren't tied up with the producers,just wanting more return from their $ than what they get from banks,or stocks. You just have to find them. 

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Permalink Reply by Bullfrex on December 19, 2018 at 11:02am

Sarah,

A daunting task, this selling of Mineral Rights. There are many, many people out there who will make you an offer. That is where the trouble starts, as it is very difficult to know where the offer stands in terms of fairness to you. Might I suggest contacting an OGM rights appraiser, as they MAY be (or maybe not) the best source, but at least it is a starting point.

Another consideration might be selling an undivided percentage of your OGM rights....gets you some cash now but keeps you in the game for development, if that works in your situation.

Best of luck to you! 

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Permalink Reply by Sarah Violet on December 19, 2018 at 12:26pm

I' m going  to flip this around. What if I wanted to buy Mineral Rights? Would the process be the same?

I would assume I would have more leverage as a buyer?

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Permalink Reply by james on December 19, 2018 at 12:32pm

BOP Land Services was leasing for Edgemarc Enegry recently for $2000 and 14%-15% royalties. I’m not sure if you should double this amount since most of the leases are 5 + 5 year leases at $2000 each 5 year term or if the rights are worth more then that selling?

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Permalink Reply by james on December 19, 2018 at 12:32pm

This is in Butler County where they were leasing.

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Permalink Reply by G.H. on January 9, 2019 at 4:55am

Think about it, if they are offering you $2000 per 5 year term, that is essentially $4000 per acre that you can maybe get without selling.  Of course, no guarantee on the second/renewal term.  If that is the case, I would want $4000 per acre PLUS another nice chunk on top to sell.

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Permalink Reply by james on December 19, 2018 at 12:36pm

Let me know if you have any luck getting offers for your rights, I talked to both BOP and Edgemarc and I’m not sure if I would rather lease for $2000 or sell the rights for $4000-$5000? My 79 acres is also in Butler county. Thanks.

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Permalink Reply by william george allison on December 23, 2018 at 9:09am

it seems like if you already got your 2nd term bonus money they give you a lowball offer for you minerals they want that bonus money and your minerals .

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Permalink Reply by Natalie Kalmeyer on January 7, 2019 at 3:55am

Hey Sarah, we help people sell mineral rights and would be happy to give you our estimation of market value. 

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Permalink Reply by Natalie Kalmeyer on January 9, 2019 at 3:31am

CX Energy. You can email me your phone number, county/township and parcel ID, and lease status and I will respond back to you. :)  nkalmeyer@cx-energy.com

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