My father was offered $4,500/acre for the mineral rights on some land he owns near Three Rivers. I assume that there are many variables at play, but does anyone have a view as to whether or not this is a reasonable price - i.e., in the general ballpark of what others have been offered?
That seems to be a fair price if the property is N,NW, or W of Three Rivers. South would be in gas only. I have family members who got 5,400/acre 10 miles north. Seems like the price goes up as time passes.
I don't know exactly where his property is but I think it is to the SW in the direction of Robstown. I appreciate the feedback, which I will pass along. If there are any new developments I will be sure to share with the group. Thanks again.
Bill
That is a good range, you might get more but the value will be in the royalty %. You should get 22 to 25%. Has anyone seen more? North of Three Rivers you get into Wet Gas and condensate and further North condensate, the black gold! Review the Eagle Ford map and see where you might be a located. As get a good mineral contract lawyer.
Thanks Michael. I learned that the property is located roughly 10-12 miles NW of Three Rivers as the crow flies. I am somewhat confused by your response. Are you suggesting that folks are selling mineral rights to their property and retainkng a 22-25% royalty? Or are you suggesting that the selling price is affected by the royalty % of an existing oil and gas lease on the property? Or something else? Also, I completely agree with the advice to engage a good mineral contract lawyer. Do you have any recommendations? Thanks again.
Bill
Michael Webre said:
That is a good range, you might get more but the value will be in the royalty %. You should get 22 to 25%. Has anyone seen more? North of Three Rivers you get into Wet Gas and condensate and further North condensate, the black gold! Review the Eagle Ford map and see where you might be a located. As get a good mineral contract lawyer.
I am sorry for the miss understanding. It is important to negotiate both the signing bonus as well as the royalty percentage. What I meant was do not be blown away with a good bonus and drive for a high royalty percentage. Because of the mineral value, you will stand to make much more on the royalty as time goes on. There is a good lawyer in Three Rivers, Harry J. Schulz. As with every other good lawyer in the area not sure if he has the time to service new accounts. You can only ask. The office is on the main drag and is Schulz and Schulz.
Michael.
WAH said:
Thanks Michael. I learned that the property is located roughly 10-12 miles NW of Three Rivers as the crow flies. I am somewhat confused by your response. Are you suggesting that folks are selling mineral rights to their property and retainkng a 22-25% royalty? Or are you suggesting that the selling price is affected by the royalty % of an existing oil and gas lease on the property? Or something else? Also, I completely agree with the advice to engage a good mineral contract lawyer. Do you have any recommendations? Thanks again.
Bill
Michael Webre said:That is a good range, you might get more but the value will be in the royalty %. You should get 22 to 25%. Has anyone seen more? North of Three Rivers you get into Wet Gas and condensate and further North condensate, the black gold! Review the Eagle Ford map and see where you might be a located. As get a good mineral contract lawyer.
I am confused by your statement. Was you father offered $4500 as a purchase prices for his minerals or was that the bonus lease consideration amount (as part of an Oil and Gas lease)? My advice would be to NEVER sell minerals.
I was confused by Michael Webre’s statement too. My father was offered $4,500/acre as a purchase price – not as a bonus for signing a lease. Thanks for your advice.
Ron Hicks said:
I am confused by your statement. Was you father offered $4500 as a purchase prices for his minerals or was that the bonus lease consideration amount (as part of an Oil and Gas lease)? My advice would be to NEVER sell minerals.
If you own land in the city limits of 3 Rivers, is that wet or dry gas area?
I don’t know but perhaps someone else does.
Never ever Sell the minerals! Lease w/ bonus.
Good luck!
WAH said:
I was confused by Michael Webre’s statement too. My father was offered $4,500/acre as a purchase price – not as a bonus for signing a lease. Thanks for your advice.
Ron Hicks said:
I am confused by your statement. Was you father offered $4500 as a purchase prices for his minerals or was that the bonus lease consideration amount (as part of an Oil and Gas lease)? My advice would be to NEVER sell minerals.