I have a friend that owns several different tracts of mineral rights in different area’s of Leon County that he inherited from his family. He is getting offers to buy all or part of these tracts for the past year. Even though Natural Gas prices are low he says the offers are still coming in. Most are west of Centerville, Texas.
Do you have a particular question? Gas prices are expected to rise in the late 2024-2026, so buyers are trying to get ahead of the game if they have a line of sight on an operator that is planning to drill.
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For the last year, I’ve have had at least 25 or so offers to buy my mineral rights in Leon County. The best offer is the most recent one for $9K an acre. This is starting to get close to tempting. What do others experience with monthly payments? How much to people receive monthly if they keep their mineral rights?
It depends. Somebody has to drill wells there. No wells, no money.
In general, its going to be binary. You get no wells and you get nothing. You get wells, and then your monthly revenue over, say… 3-4 years will be equal to what you got paid.
The real question is what are the chances that you are going to wells drilled there in the next X years? Nobody here has any idea without legals, but if you have gotten 25 offers I’d guess the odds are decent.
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@Jsfronk ,That can depend on many things. First what is your percentage? Then you need to know how many NRA’s ( net royalty acres, not surface acres ), The price each month of oil or gas that is being produced. An allocation well or pooled? Also one must figure in decline monthly of production. These are the basics, there is more to this as well, so giving a monthly amount will vary per individual. I hope this helps? mk
Your friend also needs to review (read up)their lease they signed, the biggest drawdown on Royalties currently is the marketing clause. The absence of an effective one could take up to half your royalty payment.
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