Even though my royalty checks are greatly less,I keep receiving letters wanting to purchase my rights. Is it time to sell,or should I ride it out? Thank you.Alice Church
Alice, I sent you a request.
I’m sorry,but what do you mean by I’ve sent you a request? If you have replied,how do I see the request? Thank you,Alice Church
Sorry I found your request,it had gone to Spam! All’s well now!
Natural Gas is low, cheap, and will remain so for years likely. But eventually it will return and with it, the value of the mineral right. If you have a position in a drilling unit where only a couple of wells have been drilled then there is a lot of reserves remaining in the ground. They are worth whatever. Just because you check is say down to $100 a month does not mean your minerals are only $3,600 (3 years income). What is your net mineral acreage? If 1 acre, then the mineral is worth $3,600...if 10 acres it is $360/acre. Since many sales suggest the minimum most Fay. Shale land is selling for is $1,500- 2,000 or so per acre why accept an offer for less?
But if there are going to be additional wells drilled, then how old are you, and who would inherit it? For me, it is a no-brainer. I want my kin to benefit and the best benefit I can give them is to pass this on to the next generation. If no kin and / or over 65, then maybe selling makes sense.
Thank you for replying ,I own forty acres of mineral rights,right now six well are producing,and two are listed as active. I am not sure what the difference is between active and producing. I am seventy years old,and have three son’s that will inherit. I also have Grandchildren. I believe I will hang on,and leave thise rights to my children. If you can give me an explanation of an active ,I would appreciate your help.
Again thank you very much.
That means it has a permit and may have been drilled but is not producing. Many wells are called "DUCs" - Drilled but Un Completed. Also, if a well is a cross-section well, you may be getting proceeds from only part of the well. I have seen sections that handle up to 10 wells, but most of the wells are less than 100% inside the drilling unit, meaning the production is pro-rated between the sections that the borehole actually lays in. Yes, I would keep the mineral right. And with SWN developing the Moorefield Fm. below the Fayetteville, wells may eventually be "stacked" one zone upon the other.
Thank you so much for the information!