Can anyone tell me the going rate for SELLING mineral rights in Brazos County, particularly James Hope Survey A-22 Wellborn) currently under lease at 18.75%. Was offered 4488/ac.
Also Maria Kegans Survey A-28 under lease @ 22.5%. Was offered 5400/ac.
Are these fair offers? I'd appreciate feedback from you if you know.
What company is trying to buy?
Dinah - There is a lot of recently drilling targeting the Eagle Ford and Woodbine in that area. Offers like that indicate to me that your property is in a potentially very good area, at least in the eyes of the firm making the offer. You may even be in a permitted well. To whom are your minerals leased?
Normally Initial Offers are rock bottom prices. Personally, I can't imagine anyone selling their mineral rights especially in such an active area. If you are determined to sell, I suggest you contact a some of the companies currently active in drilling in Brazos County such as Halcon, Anadarko, Clayton Williams, Vess and Apache.
I would also counter with 3 to 4 times that amount and see if they bite.
I have an "Eleventh Commandment" - Thou Shall Not Sell Thy Mineral Rights.
A-22 is in an area where Apache, Anadarko, Halcon, PetroEdge and other Eagle Ford operators have been active along trend. Definitiely a primo area of Eagle Ford / Maness potential.
The numbers you are being offered here are way too low for this area (IMO).
A-28 is in an area that is a bit more downdip and away from recent Eagle Ford drilling. But that being said, odds are that industry activity will eventually get to this area (which is probably more gassy than the area around Bryan . College Station).
Everyone has their own reasons for wanting to sell minerals and sometimes it can be the right thing to do financially. One has to consider the short and long term considerations of doing this (e.g. taxes, long term cash flow, etc.).
As indicated by another poster, the 11th commandment is a good one to follow. But if you are going to "break it",I recommend that you do tons of research as to what is happening in your area as to drilling, production, decline profiles, etc. so that you make the most informed decision possible.
Well Explained Rock Man!
Bill
Rock Man said:
A-22 is in an area where Apache, Anadarko, Halcon, PetroEdge and other Eagle Ford operators have been active along trend. Definitiely a primo area of Eagle Ford / Maness potential.
The numbers you are being offered here are way too low for this area (IMO).
A-28 is in an area that is a bit more downdip and away from recent Eagle Ford drilling. But that being said, odds are that industry activity will eventually get to this area (which is probably more gassy than the area around Bryan . College Station).
Everyone has their own reasons for wanting to sell minerals and sometimes it can be the right thing to do financially. One has to consider the short and long term considerations of doing this (e.g. taxes, long term cash flow, etc.).
As indicated by another poster, the 11th commandment is a good one to follow. But if you are going to "break it",I recommend that you do tons of research as to what is happening in your area as to drilling, production, decline profiles, etc. so that you make the most informed decision possible.
Dinah,
It's also possible to just sell a small portion of your minerals and keep some.
Clint Liles
Thank you all for your comments. That helps.