I have again had an oil company wanting either to buy or lease my little 5 acres. I am the only 5 acres they haven’t signed to the whole section. It is in Scurry County Texas. It is Section 154 they inform me that they have put together 30,000 acres drilling prospect and I am the only 5 acres they haven’t signed.
Can you explain why there is such an interest in my 5 acres. If I am non leased I understand I will just need to wait until expenses have been paid before I can collect any royalties.
They have offered 350.00 an acre to lease and 25.000.00 total to buy.
Can someone tell me if these are fair offers as I think they are somewhat low?
The oil business being the shape it is in right now should I seriously consider their offer or ask them for more.
Anything anyone could give me would be much appreciated.
I can’t address the values offered, but the decision to lease or sell often comes down to non-business reasons. Are you in a position to keep track of the interests. Will your children pay attention to the interests? Are there other needs in your life or your family’s life that need to be taken care of. There will be people who will suggest that one should never sell. But, in my humble opinion, one cannot have absolutes of never or always in matters like this.
I always ask for a bit more. If they want to sign, they will go up sometimes. The oil business is not going away any time soon. Eventually, maybe…
There is a leasing play in Scurry right now, so that is encouraging. The terms of the lease are more important than the amount they are offering. What is the royalty?
If you do not sign a lease, I believe you will be a non-consenting co-tenant if they drill a well. Your interest will be carried by the operator until the well pays out (however long that may take). You might try typing that into the search bar to read through some older posts to see if there is additional information as to what that means.
Lots of things to weigh-in on: Life situation, royalty they are offering, what happens if you don’t lease (non-consenting cotenant responsibilities). A mineral appraisal valuation can also take a look at what is going on in the area to make sure you are getting a fair deal.
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in display images and/or brief text messaging on site
as a Business Member participating in many conversations throughout the site (note the blue colored “B” on their picture and blue text on their posts).
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