I don't know where to start. I inherited some gas and oil mineral right from my dad in Rusk County Texas. Bergfeld Land & Mineral contacted me about leasing the mineral rights to them back in 2009, They contacted me again last year to renew the lease. I did.
The property. 141.5 acres of land situated in the Wade Walters Survey, A-809, Rusk County, Texas and A-888, Cherokee County, Texas, described in Warranty Deed dated May 18, 1956 from C. E. Liles et ux to Texas Power & Light Company and recorded in Volume 451, Page 154, Cherokee County Deed Records. This is just a rough description.
Today I received a letter from Southwest Petroleum Company, L. P. It says they are currently purchasing mineral and royalty interests in several areas of Texas and would like to purchase the interest that I own. It has a check attached to the letter for $250.00 as their initial payment. Then it has my payment calculation:
Your final payment amount will be based on 2.5 times the amount paid to you per net mineral acre, for your current oil & gas lease, as referenced on the enclosed Conveyance, subjuect to our approval and the terms herein. (For example, if you leased 5.0 net mineral acres for $300.00 per net mineral acre, your final payment will be calculated as 5.0 X $300.00 X 2.5= $3,750.00.
I am lost and need help. I don't think I want to do this.
Also after doing some searching I found this. Forest Oil Corporation has been drilling oil & gas in Rusk County and the mineral rights belong to Alexander Heirs. My name is Victor Lynn Alexander. Is this me?
Help or send me to the right person.
Dear Mr. Alexander,
Your initial reaction was "I don't think that I want to do this." That is a good initial reaction. Forest has been drilling horizontal wells in the Pettit formation with limited success.
2.5 x is a very minimum multiplier. If I were you, I would pass and try to determine what value, if any, can be attributed to the asset and the ways to commercialize this asset.
Best
Buddy Cotten
DO NOT sell your rights, it is same as these Company's that say "hey we will buy you a steak dinner" just come listen to us talk. there is no free lunch, they know something, you should look it to this.
I live in Oklahoma and recently received the same offer from the same company for minerals here in Oklahoma. Unless you really need the cash, FILE IT IN THE ROUND FILE. Or if you want a good laugh a few years from now, save it to read later for that purpose.
I'm learning a lot from this forum. I know my dad use to get about $25.00 a month years ago from a gas lease on this property. I guess I should look a little closer and pay more attention to this. This looks like a good place to start.
Lynn,
After checking your minerals area of Rusk County I can see why Southwest is interested in buying your minerals.
Adjoining your property to the south is A-248 with 2 Horizontals oil wells that were drilled in (Sept 2004-API # 401-33370) and (October 2005-API # 401 33631). Apparently they like what they see. And to the west of your minerals I see several oil wells and plugged oil wells. The target formation is the Pettit for these Horizontal wells.
Link to drilling permit for well # 401-33370:
http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?methodToCall=searchByUniversalDocNo&universalDocNo=621970&rrcActionMan=H4sIAAAAAAAAAL1Qu27DMAz8mnQU9HDSLByMop3bJGgGI4NiE44A2TIoGW0BfXxpFwVSp3MmHY-n45FZSQk6K6lAPRDVZZ1c6Hc1NZU8wcx_4NkOQ9SC2yImm1CkTzHGlSm3khUaVvrl-VgyNBNsyHnv-vYVqXMpvo1IXz-2ogksKqDDdAnNITxZ75lYA2EaqT-EPVqqL0xtQd6kqeLcLamNYrBku3frR5xDcoZCKmPM4xSIDc_Yuj4eXZrM2O1PrfSivtYvxqr7HSH-Lr-BwbZIV0v-exF1qpa6KSyorEHJbBgUIPOa3w0Tt7_vcs9vPp6temECAAA
You're in a good area for some oil production in the future. No, don't sell. Just my opinion.
GIS Map of Rusk County A-809 and surrounding area;
Clint Liles
Southwest Petroleum has an F rating at the Better Business Bureau.
There have been many complaints registered against them. In my opinion, they are not someone anyone would want to deal with. Once you read the fine print on that contract you will see why it is a very bad idea.
I never did anything. Just waiting to see if anything ever happens.
