Does anyone know what price per acre I should be asking for unleased mineral rights in Doddridge county? I was originally contacted by EQT to lease my interest, but I could not negotiate a deal that made any economic sense. Now they want to purchase my interest. Any thoughts from the group will be greatly appreciated.
Charles Bailey
Charles,
There are endless variables as to the value attributed to a lease or sale, district, size, percentage of ownership, et al. You are welcome to contact me directly via this site if you wish to share the specifics to the parcel(s) that you have an interest in.
On a side note, I spoke with my legal counsel this afternoon and was advised that EQT is no longer offering "Paid Up" leases, instead spreading the payment over the term of the lease. ie. Lump sum payment for the lease, upon signing.
I would be happy to offer any assistance that I can.
Cheers
Hi
Thank you very much for your reply. The first offer was for a delay lease paid over five years which was not acceptable. I was able to negotiate a paid up lease, but their discounted amount was drastic and not at all acceptable. I anticipate an offer to purchase my interest in a day or so. If it is ok, i may contact you then to discuss. Thanks again and take care!
Charles Bailey
Charles,
I look forward to hearing from you, especially to learn what discount they attempted to negotiate, for Paid Up status.
Cheers
Charles,
My 5 year lease expired this February. The Antero rep approached me to sign a new 5 year lease in October of 2015. The agreed upon lease was for $2,500 an acre. However, with the significant decline in gas prices, over supply, and financial pressures of the gas companies, I suspect companies may not be willing to pay that much now. It pays to shop around.
Jerry,
If I may be nosey, what royalty % were you able to receive on the new lease? Did Antero increase the royalty percentage with the lower signing bonus?
Increased from 16- 18%.
Congrats!
Thank you for sharing.
Hi,
I just heard back from the landman representing EQT with their purchase offer. It was for $2,800 per acre (mineral rights only) and unleased. Their first offer out of the box for a 5 year delay lease was for $1,800 per acre. When I asked for a paid up lease the price I was quoted was $1,000 per acre. Both of the proposed leases came with a 15% net royalty. I would rather sell my interest rather than to be concerned about problems down the road (litigation, etc.). Any advise will be appreciated.
Take care
Charles