Gary offers what might be the only wise decision, sell half. If you never sold any and it never produces you made a big fat zero, not very smart and you'll feel even worse. If you sell it all you have millions compared to Craig who may have that big fat zero but you may lose out on more millions if it comes in with some tremendous wells (at $10k per acre it would need to have some very good wells to make that in royalties). If you sell half you can only lose half either way but still have 1 million compared to some who might have more or some who might have a big fat $zero$. One could also consider selling 100% for 2 million to be the wisest decision, if you watch Jim Cramer, pigs get fat and hogs get slaughtered, don't be too greedy. Time can be of the essence as offers can be withdrawn in a heart beat, auctions take a long time to set up. Insiders, or buyer, don't always know any better than you, just take a look at the Niobrara and all the major oil companies that have lost 100's of millions. Also, in every play there are areas within the play that will never get drilled or produce in paying quantities and they never know till they get into it, by then it's too late to change decisions.
I'm of the opinion that you should never sell mineral rights. But if you do, make sure that you keep control of what happens on the surface. There are so many surface owners here in West Virginia that wish they owned their minerals so that they could keep their little piece of "Almost Heaven" pristine that I can't number them. The minerals were severed off a century ago, when development only took up maybe an acre, plus a road to get there and a pipeline to get out. Now it's a 6-10 acre pad with frac fluid ponds and flaring for each well that's completed, a very wide road in, and the pipeline out. You can't predict what's going to be needed in the future. Keep some control.
This is for Texas Tea I also am looking at selling acreage in the Eagle Ford in live Oak county Texas and would welcome any info on what that looks like? Shirley
Cassie -
I also advise you to never sell your minerals. Anyone who offers you that much money out of the blue, you should be very wary of.
You seem to be running a little blind here. If you will tell me your legal description(s), I will be happy to look at the area on the DrillingInfo.com website and tell you what I can about what is happening on the ground. What wells have been drilled in your area recently and what they are producing, that sort of thing.
I haven't tried it in Ohio yet, but I may be able to review up to 25 miles in any given direction.
You can post your legal description(s) here or, If you would prefer, you can accept my offer to become "A Friend" on The Forum, you can send me your legal descriptions directly.
Hope this helps -
Charles
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Shirley -
If you will accept my offer to become "A Friend" on The Forum and send me your legal descriptions, I will be happy to take a look at your properties too.
Charles
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Shirley Braune said:
This is for Texas Tea
I also am looking at selling acreage in the Eagle Ford in live Oak county Texas and would welcome any info on what that looks like?
Shirley
Shirley,
Northern Live Oak County should be pretty good for the Eagle Ford Shale. However, like Charles has said, I would need to know more information (legal description of the property) before I could estimate a ball park value. Please post that information or message it to me and I can look into it for you. Best of luck!
Shirley Braune said:
This is for Texas Tea
I also am looking at selling acreage in the Eagle Ford in live Oak county Texas and would welcome any info on what that looks like?
Shirley
Boys and Girls -
For all and each of yours' many good graces, I think that Shirley should originate her own message string regarding her property issues, henceforth.
To the best of my knowledge, this one belongs to the most talented and wonderful Ms. Cassie Strain.
And I believe that she should be allowed the respect that each of us expects from one another.
Charles
Ms. Strain:
I would have to agree with Mr. Kennedy. There are good reasons to sell and there are good reasons to hold onto minerals and lease them. If you have no inkling about what your minerals are worth, it's time to think about hiring a professional to provide you with good, solid data so that you can make an educated decision. I can assure you that if someone has offered you $2 million for your mineral rights, your property is more than likely on prime ground. On the other hand, I've seen a lot of companies make offers like that to freeze other interested buyers or lessors out while they determine whether or not an area is viable. In the end, if they renege on the offer, the others may not be around any longer.
Just like any other form of real estate, mineral rights are all about "location, location, location." A good, reputable professional landman can be invaluable in providing you with solid information on which you can base your decision. He/she will know where the hot play is and where you are in relationship to it. If your landman is any good, he/she will also have connections to geologists working the area who can provide them with some insight as to what companies are doing what in different areas. You can also get the same services from a well-qualified, very experienced oil and gas attorney, but they generally cost a little bit more.
No matter, you will need to educate yourself to what's going on in the neighborhood. Ask friends and neighbors. Eavesdrop at the local cafes. If you hear anyone talking the oil business, ask them if they wouldn't mind filling you in on what they know. Above all, be astute and be cautious. As you have seen, one person has offered you $200,000 for the same minerals for which another has offered you $2 million. Looks like there may be some sharks circling your waters. Sad to say, not all landmen, or even all attorneys, are ethical people. Find someone who has your interests at heart and will work to get you the best deal possible. Good luck!