I meant $32,500 per net mineral acre
I am a bit confused on your last post. Is the offer for you interests $32,500 or $65,000 per NMA?
Thanks,
Brian
(We own *a lot* of property in these sections)
Hello:
Having spoken with the same company Lisa thought made the $65,000.00 offer, it was actually approximately $32,500.00 per net mineral acre ($32.50+/- was just a clerical error). I also have mineral interest in the 4 sections in Blk. 76 PSL, but not in Blk. C-26.
If you want to send me a "friend request", I'll accept it and be glad to provide you with the contact information for the company Lisa received the offer from. I don't know anything about that company or it's reputation. I can also give you the contact info for another buyer who I know to be reputable who, last I heard, was also offering $32,500.00. I am a retired geologist, but am NOT a mineral/royalty buyer and have no intention of becoming one.
Hope this helps and wish you the best of luck.
Kenneth,
Thanks. I forgot to ask about the bonus.
Hi, George:
When EOG and I came to terms, I agreed to keep the amount of the bonus I received confidential. What I can tell you is that their initial offer was $3,000.00 per net mineral acre. I can also tell you that a cousin of mine who owns 80+ net mineral acres leased his to Energen last July for $5,000.00 per net mineral acre and now thinks he should have held out for more.
George, I hope this helps. I'm sorry I couldn't be more straightforward and specific.
Thank you
All I can say, JDK2009, is that you ought to be ashamed of yourself. Even though your profile is "private", do you think we are all too dumb to figure a way to check you out? It is dishonest, unethical characters like you that give the industry you're in a bad name. I may be getting "up there" in years, but I wasn't born yesterday!
Interesting artice from North American Shale Magazine on Mineral Rights
==========================================
Shale’s Other Hot Commodity: Mineral Rights
Several mineral acquisition firms are finding success in shale plays. North American Shale magazine explains the business case for investors and sellers of mineral rights.
By Staff | May 08, 2017
-
IMAGE: NORTH AMERICAN SHALE MAGAZINE
Longpoint Minerals is considered a startup in the relatively new business of mineral and royalty investment. Will Cullen, vice president of the Denver-based firm, helped form the company in 2016 and to date has raised more than $800 million to acquire mineral and royalty rights in shale plays throughout the U.S. Longpoint is one of a handful of firms that is now working to buy mineral rights from individual owners or large entities with the future in mind. Mineral investment firms, starting in 2014, recognized the opportunity in shale oil and gas development. Purchasing acreage blocks that include mineral rights can give investors a consistent yield for many years to come, and in return to mineral rights owners who sell, a chance at a major guaranteed cash payment in exchange for their mineral rights. Advances in drilling, completion technology, well site optimization and a general increase in reservoir understanding have created a positive scenario for mineral investment firms. Outside investors can not only recoup a consistent yield on an investment into minerals without exposure to the cost of drilling or production that working interest owners in wells have to experience, but they can also potentially reap the benefits of new technology or oilfield strategies that bring more wells or better production online in a certain mineral acreage position that many may not have thought possible in the recent past.
Cullen believes the market for minerals is in the billions but the business is still in the early stages. “Most mineral owners base the value of their minerals off the value of their current checks,” he said. Mineral owners sell minerals for various reasons, but timing is the biggest reason Cullen’s clients sell. Before he starts negotiating with mineral owners, Cullen expects that 90 percent of his talks will end without a deal, however. People sell for various reasons, he said, and many understand that their acreage could yield better payouts in the future. In most cases, Cullen said, large acreage holders are very savvy, some even employ geologists or consultants to keep them informed on the value of the mineral rights.
Bradon Fikes, vice president of Santa Elena Minerals LP, a Texas-based mineral and royalty investment firm, agreed with Cullen on the importance of timing in acquiring mineral rights. Fikes hears from many mineral owners that they were told never to sell their mineral rights because someday they would be worth something. “That someday is now,” he said. Cullen and Fikes will both perform transactions within a wide range, paying out at $20,000 or $100 million depending on the amount of acreage or mineral rights included in a deal.
Karl Brensike, CEO of Haymaker Minerals, was an early believer and pioneer in the minerals space. In 2014, he worked to solidify the business case for minerals investments to private equity firms. “We had to convince them that the industry [oil and gas] was going to evolve,” he said. Prior to Brensike’s work to educate investors on the value of minerals and the long-term yield potential of owning minerals in places like the Permian Basin or the SCOOP/STACK, Brensike said private equity firms didn’t want to invest in the space because they viewed it as a price play. “Investors didn’t want to invest in managers guessing the price of oil,” he said. Essentially, investors didn’t want to rely on the price of oil to entirely dictate when or to what extent they might recoup an investment. But, with the new approach of E&Ps to manufacture or develop fields at mass scales, along with constantly improving completion technology that is yielding more oil per well, the price of oil—at least at prices as low as $35/b—doesn’t matter to the same extent it once did.
First, I learned more about you than you know. Second, my comments had absolutely nothing to do with your opinions re: where the petroleum industry will be in 50 years or anything else. It was the nature of your post that was deceptive, unethical and dishonest.
You approached us as just another good old boy with nothing to gain but to help us out by "passing on" our contact information to a "group" so good that you "didn't believe it at first" until you "heard the offer and saw the picture of the check". In actuality, you are active in this business and out to make a buck off these people.
Let me state here and now that there is absolutely nothing wrong with making a profit on a mineral deal. Additionally, for all I know, you may have helped some people get "the best deal possible". There is, however, a LOT wrong with not providing full disclosure and obtaining personal information under false pretenses, express or implied.
I am a retired exploration geologist and former CEO of a successful petroleum E&P company. I still retain the title of Exploration Director Emeritus with that firm. I have been a member of the AAPG for going on 40 years and have contributed to it's Professional Affairs Division. I have had post graduate courses and attended high level seminars on professional and legal ethics/standards. I could go on.
I know what I'm talking about and--whether you realized it or not, JDK2009--you crossed the line. Please, learn from it and help make your end of the petroleum industry the best it can be.
Thank you for sharing. What is your opinion on this, specifically with Loving County?
I accepted your friend request - let's talk about this issue on that site
If I am not mistaken the highest long term capital gains rate for 2017 is only 20% and that is only if you fall into the highest 39.6% percent tax bracket. Most Americans still fall into the 15% capital gains tax bracket according to their income level. You are correct in saying Trump has proposed some changes to lower and simply it, hopefully those changes will happen in 2018.
Cam
Very similar to what I was saying
Hi:
A couple of weeks ago I was informed by one of EOG's contract landmen that the first well on these four Block 76 PSL sections had been drilled and completed in the Wolfcamp (probably upper). I was told that "it was a good well by EOG standards" and, based on the results of the first well that a second well would definitely be drilled. As EOG gets some of the best completion results in the southern Delaware Basin, this sounds very promising.
However he said there were no production or IP figures as of yet and he didn't know when the second well would be spudded. He thought (but was not certain) that the first well was on the Rustler "A" Unit in Sections 25 and 36 (EOG's locations in these sections are permitted with 2 mile north-south laterals).
Has anyone heard any more recent or more complete news that is reliable?