Unless money is needed, most mineral owners will not sell their interest as most offers to buy mineral acreage amounts to only 2 or 3 times what the lease will bring. It is a gamble but should a well be completed, the royalties will be greater than the buy-out. I have been offered to sell many times on a few mineral acreages and I always refuse because I think the sources of the offer know more about what is happening than I do. Of course with health or age issues I can understand someone selling unless they have deserving heirs to leave this interest to.
James since you live in Tennessee, you may not be aware of the activity in Anderson county. The word from the County Clerk's office in Palestine is that there has never been a larger land play in this county. Over the last two years there have been thousands of leases by many companies in this county and with new technology and new and Improved fracking methods, oil and gas wells are being successfully drilled over the entire state. I have a 50 year old degree in geology and never worked as a geologist but I have kept up with the industry. Look what is currently happening in the Permian basin in west Texas and the Eagle Ford in south Texas. These areas were written off 25 years as being pumped dry but today more oil than ever is being produced. And because of the interest in our area, many believe that a lot of oil companies are betting on east Texas. Good luck on your decision.
Thank you so much, John! I should receive my Uncle's package today with documents that will help. He tells me we have around 20 interests. Would you be willing to take a look if I send you the info. My Uncle is 93 and I'm a novice. The company who has approached us seems very eager, especially on the first offer on only one of these interests. Thanks.
john cundieff said:
James since you live in Tennessee, you may not be aware of the activity in Anderson county. The word from the County Clerk's office in Palestine is that there has never been a larger land play in this county. Over the last two years there have been thousands of leases by many companies in this county and with new technology and new and Improved fracking methods, oil and gas wells are being successfully drilled over the entire state. I have a 50 year old degree in geology and never worked as a geologist but I have kept up with the industry. Look what is currently happening in the Permian basin in west Texas and the Eagle Ford in south Texas. These areas were written off 25 years as being pumped dry but today more oil than ever is being produced. And because of the interest in our area, many believe that a lot of oil companies are betting on east Texas. Good luck on your decision.
Sure, I would be happy to review them. I am not an expert but at least I'll know the area that has the interest of the proposed buyers and if it is in some "hot" part of the county, you will have more information on which to make your decision. My mailing address is, John Cundieff, 1146 CR 1407, Jacksonville, Tex. 75766 and my e-mail is [email protected]