Does anyone have any information on current mineral rights lease rates in Jones County near the old farming town of Tuxedo??
Kevin,
Thanks for the reply; I will keep in touch and let you know what our offer is as soon as I learn the details. Could you please explain a little to me about the offer from the group you mentioned..."paying 30 x's the monthly income". I'm sorry, I don't understand what that means. Is that a royalty on the production?? What was the amount of "signing bonus" in that offer, if any??
Thanks again for your comments.
Kevin Lafferty said:
When you determine the amount let me know. I found a group that is paying 30 x's the monthly income.
I had a couple of pieces of property I thought I would try it with. It's basically "selling" your lease. But for a crazy amount. I've been watching my monthly check amounts get smaller. For one of my smaller properties I was receiving $386.37 a month. They offered a "buy out" of the lease for 30x's that amount or $ 11,591.10. For another I was receiving $117.17 for which they offered $3,515.10. It would take me 2 1/2 years to get those amounts. Or possibly less if the prices keep going down. Let me know if I can help future.
Thanks
Kevin
Be VERY wary of buy out offers to sell your minerals outright. Whatever the "crazy amount" the offer might be, it will generally be pennies on the dollar to what the real long-term value of the royalty will be.
Furthmore, once those minerals are sold they are gone for good. No further leasing, royalty, nada.
Seller beware.
They might want to buy you out right before they rework the well, or drill a second well in the tract. For what it's worth, I personally would stay in for the long term.
One offer to purchase that I received about 10 or 20 yrs ago came about 2 weeks before a Division Order arrived.
We have 70 acres in Anson and was recently offered $30 acre signing bonus and 20% royalty. Wondering myself what going rates are...
Alicia, I own intrest in several oil wells in south texas and an old one in Jones county about 3 or so miles south east of Anson. Where about is your 70 ac.? I would like to know because I have other land in that area that is not leased yet... Do you know what percentage of minerals you own? I know someone that leased thier place a few miles southwest of Anson with no signing bonus and 25% royalty. That would be an extra 5% royalty if they hit oil...30 an acre is probably okay for Anson at this time, but what kind of oil company is it? A little one that won't have the revenue to drill more than once? How deep do they want to go? I'm sure you already know this, but if you don't own all of the minerals you will probably miss out on actually getting the whole 30 per acre anyway...I know this because I have had it happen to me on leases I have signed in the last couple of years...
Justin, Our land is east of Anson as well about 8 miles. We still have yet to sign a lease because we just relly don't know much about the lease and don't want to make a foolish mistake. We own 100% of the minerals and the land. As for depth I think the existing well is about 2000 and they said they want to go deeper. We have stopped negotiations with them at this point. Do you have any reputable companies you could recommend? We currently reside in South Texas so doing all this so far away makes it hard too...
Alicia, is the old well that is 2k deep pluged and they want to re-enter it? I have read that Victory Energy is doing some sizemic testing towards Avoca--not too familiar with the companies in that area, but I know that there are several small ones that will just re-enter an old well and just don't have the money to drill another--then you are tied up in a lease with someone...That has it's pro's and cons...You may never have a bigger company get a chance...I would recommend getting an attourney, negotiating for a higher royalty rate, and if they are doing vertical wells, put a maximum depth on the lease so you could still lease for deeper horizontal wells in the future. Some other things people have failed to make sure is in a lease is damage to property, if they put a pipeline in (how much they have to pay you per foot), royalty at the head of the well or royalty after refinery--big diffrences that people just get screwed on...I hate to give advice on being too picky, but if you have 100% of the minerals you are in control! If a company approached you it is in thier best intrest to lease your property...
Alicia Wilson said:
Justin, Our land is east of Anson as well about 8 miles. We still have yet to sign a lease because we just relly don't know much about the lease and don't want to make a foolish mistake. We own 100% of the minerals and the land. As for depth I think the existing well is about 2000 and they said they want to go deeper. We have stopped negotiations with them at this point. Do you have any reputable companies you could recommend? We currently reside in South Texas so doing all this so far away makes it hard too...
Not real sure if re-entry or new well. We hire an atty and we did counter with the maximum depth but they declined. We also reached out to Victory with no success. And see the whole property damage thing confuses me and then we also have a salt water disposal well on the land that I think can be negotiated on. Guess I really need to get back into this in hopes of getting something going. Your advice for being picky...that is exactly what we are doing; it is OUR land and we have every right to get what we want and how we want it :)