I am thinking of selling my Mineral Rights in Converse Wyoming... a company only offered me $1000.00 per acre. I have 53.136 acres and its producing. Does anyone know just how much I should counter offer?
That's outrageously LOW! You've been given an offer by either a "flipper" (someone who intends to resell it for a MUCH higher price), or a company/party looking to make a killing off of your lack of knowledge.
We've been offered 25 times that price for a percentage of our expanding production in Converse County. (Which seems like crap in itself). Nevertheless, the offer is from a legitimate (40 year) purchaser who has multiple holdings in Converse and Campbell Counties, and they have no lawsuits against them to date.
Please provide more details regarding the location of your holdings (Legal Description). There are people on this forum who will guide you in the right direction, There are also predatory opportunists who work in the business and troll this forum. They will try to suck every dime they can get from you under the guise of "helping you".
DO NOT SELL for $1,000 per acre! Let us help you estimate the worth of your property. Hopefully we can help you to determine whether you should even sell at all.
First and Foremost, please reconsider selling your Mineral Rights considering the amount of activity in Converse County. Even if you already have some producing wells doesn't mean they wont drill more. One good well now could pay hundreds of times more than what you would receive in a sell.
I have an 11th Commandment "Thou Shall Not Sell Thy Mineral Rights"!
DO NOT SELL YOUR MINERAL RIGHTS! Most companies making offers out of the blue are normally offering pennies on the dollar and $1000 an acre is a CON-JOB.
In several previous leases, I have accepted an offer as high as $2000 an acre and recently I leased some area that was not currently active for $500 an acre for three years.
If I was selling, my first call would be to Joe Thames {President} with Baseline Minerals in Denver, Co. (Office: 303-534-3628 Cell: 303-875-0277 or 303-570-1331) I have had numerous business/mineral dealing with Joe at Baseline and he is the fairest and most honest men I have ever worked with when it came to knowledge about minerals in Wyoming and especially in Converse County. I feel he has the integrity along with reputable contacts to guide you in the right directing. Google Baseline Minerals for their webpage. Let him know I suggested you call.
God Bless Y'all and Good Luck!
Bill Osborn
979-402-9363
Tamara Jones said:
I'm having to sell cause I'm disabled and so is my husband...we are both diabetics and my husband's insulin is very high every month that his co pays don't cover. We are on a limited income and I have medical bills, car note and ect. I would love to pay off. But I'm not giving in and letting it go to some CON-JOB for $1k an acre. So does anyone know how much my holding are worth? I would love to get $8k an acre...but someone says that's not happening!
Bill Osborn said:First and Foremost, please reconsider selling your Mineral Rights considering the amount of activity in Converse County. Even if you already have some producing wells doesn't mean they wont drill more. One good well now could pay hundreds of times more than what you would receive in a sell.
I have an 11th Commandment "Thou Shall Not Sell Thy Mineral Rights"!
DO NOT SELL YOUR MINERAL RIGHTS! Most companies making offers out of the blue are normally offering pennies on the dollar and $1000 an acre is a CON-JOB.
In several previous leases, I have accepted an offer as high as $2000 an acre and recently I leased some area that was not currently active for $500 an acre for three years.
Ms. Jones, the two means I use to calculate value of minerals are (1) recent sales (comps) (2) the present worth of the cash flows one could receive. Re: Sec 29-37N-74W, on Wyoming Oil and Gas Commission map server, I do not see any producing wells.
First, you must find a buyer (not on this site). Every buyer worth their salt wants to acquire as cheaply as possible. An auction would be your best bet, it's competitive and buyers are sophisticated. Converse is considered a well-developed county. I see 3 horizontal permits going through your Section 29. The two best auctions are Energynet.com and Oil and Gas Asset Clearinghouse. Both have competent sales reps that will help you correctly position your asset. You are selling in a low market, if this had been 2013, I'd guess you could hope for up to $5k an acre. Not now.
I don't see these minerals going for more than $2,500 an acre tops but the market will ultimately decide. It's still a fairly untested area. It's not accurate to assume that because this is Converse, all Townships contain producible oil. These aren't blanket formations, though they are widespread. Companies are looking for sweet spots. I just drilled a couple of expensive horizontal wells in red-hot Lea County, New Mexico with Devon and the first came on at 16 Barrels of oil per day. Well cost was $7 million. Ouch.
Finally, even in the sweetest spots of North Dakota (most advanced area) with multi-stacked pays already producing horizontally, the most per acre that has been paid is $35k. But that was a large deal and included valuable operating rights. Drilling has virtually stopped in these areas, there is lots of risk beyond drilling (such as political, technological).
IF you can weather this storm, and get lucky....in a short couple of years your area could be developed (it can happen really fast in high oil price environment). If you get a few horizontal wells producing, then you're looking at $8-10k an acre easily. You'd be kicking yourself. Health always comes first though, so I hope I've given you some decent perspective. Good luck.
Very Well Said Bart!! You are exactly right from what I have been able to research. Ms. Jones should get professional recommendations before selling and that is why I suggested Baseline Minerals. They don't buy minerals for the most part but can give a professional suggestion to the value and give direction. I didn't think of the auction resources you mentioned. If I remember correctly, she can put a minimum value of acceptance of sale.
Bart Barton said:
Ms. Jones, the two means I use to calculate value of minerals are (1) recent sales (comps) (2) the present worth of the cash flows one could receive. Re: Sec 29-37N-74W, on Wyoming Oil and Gas Commission map server, I do not see any producing wells.
First, you must find a buyer (not on this site). Every buyer worth their salt wants to acquire as cheaply as possible. An auction would be your best bet, it's competitive and buyers are sophisticated. Converse is considered a well-developed county. I see 3 horizontal permits going through your Section 29. The two best auctions are Energynet.com and Oil and Gas Asset Clearinghouse. Both have competent sales reps that will help you correctly position your asset. You are selling in a low market, if this had been 2013, I'd guess you could hope for up to $5k an acre. Not now.
I don't see these minerals going for more than $2,500 an acre tops but the market will ultimately decide. It's still a fairly untested area. It's not accurate to assume that because this is Converse, all Townships contain producible oil. These aren't blanket formations, though they are widespread. Companies are looking for sweet spots. I just drilled a couple of expensive horizontal wells in red-hot Lea County, New Mexico with Devon and the first came on at 16 Barrels of oil per day. Well cost was $7 million. Ouch.
Finally, even in the sweetest spots of North Dakota (most advanced area) with multi-stacked pays already producing horizontally, the most per acre that has been paid is $35k. But that was a large deal and included valuable operating rights. Drilling has virtually stopped in these areas, there is lots of risk beyond drilling (such as political, technological).
IF you can weather this storm, and get lucky....in a short couple of years your area could be developed (it can happen really fast in high oil price environment). If you get a few horizontal wells producing, then you're looking at $8-10k an acre easily. You'd be kicking yourself. Health always comes first though, so I hope I've given you some decent perspective. Good luck.
Correct. Just like ebay, she sets the reserve.
There's no reason why you couldn't split off a portion of those minerals for auction and keep the rest to see what happens. At this point, there is an almost certain chance we will have another bull market in the future.
89 million vehicles produced worldwide per year. Only .7% of those were alternative fuel (electric, hydrogen). Population is growing. Standards of living are rising. Those vehicles use gasoline, and that comes from light tight oil. Your area looks like a decent bet.
If they are producing have you thought about getting a short term loan based on your royalties(i.e 2 years) to pay for what you need to right now? If they are not producing then Bart and Bill are giving you the best information.