Hello. I’m checking to see if anybody knows if something is happening in Coal County. Reason is my brother got an unsolicited letter on Feb. 3 from an outfit by the name of Community Minerals LLC regarding an offer for his mineral rights. The company is based in Texas. It may be just a blanket type mailing. Let me know your thoughts. Thanks!
I think they’re just fishing. I’ve recently received offer letters from them for several different counties.
Thanks Randy M. That’s what I thought.
There is a bit of activity in Coal County, but you would have to be more specific as to location in your question. In general, if you get a mailed offer, somebody knows something and they are fishing to see if they get any bites. No harm in that. They are trying to make a living. Mineral owners should carefully consider any offer’s pros and cons before replying.
Thank you for your reply Martha. The good news is that the company that sent the letter to my Brother has a good BBB rating. I’ve left it up to him if he wants to contact them, with a caution to never accept the first offer, which may be a low-ball offer
I just received the same mailing today. I do have a small, currently paying interest in Coal county. I believe it’s a fairly recent well as I leased in 2019 but Not sure. Maybe more to come?
Thanks. Think positive!
When I get sales offers, I usually check the OCC to see if there are increased density or other cases pending. I would rather have the royalties if action is pending.
Kasier Frances is asking for increased wells density on a couple of my leases. Money to be made. Does anyone have an idea on what the Nat Gas spike will do to our royalty checks?
Time will tell on the royalties. It would depend upon if your wells were producing, what the contract price your operator received, etc. The spike was fairly short, so may not make much difference. You won’t see anything for a month or so since the oil royalties are paid one month out and gas usually two months out.
For example, since I posted, I received an offer to buy on a particular section. Looked up the section in question and I have three more wells that were just approved. Using the EUR from the OCC documents and my engineering report on the current well, I was able to get a fair estimate of of remaining value on the current well and a reasonable idea of pending value on the future wells. Let’s just say the offer was well below the future value of all wells even at a hefty discount rate. The offer was closer to the value of the remaining reserves in the current well. Pretty much what I expected.
This topic was automatically closed after 90 days. New replies are no longer allowed.