Greetings!
I'm a Mineral Rights holder in West Burleson County - about 6 miles SW of Caldwell.
There is currently a producing well onsite but production is low. Last year, we were solicited to sell the rights outright for about $10K total. This month we were just approached by a new firm offering 15 times that - which is some serious money.
I've found where the new Willard well into the Buda formation by Silver Tusk is a high producer. Does that explain the entirety of the newfound interest in our rights? Or can someone else help me understand what's going on.
Please advise!!
thanks
Sanford,
I would say you have answered your own question. And no don't sell your minerals. What is the Abstract # on your minerals?
http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?meth...
Clint Liles
http://webapps.rrc.state.tx.us/DP/viewW1PdfFormAction.do?submit=w1Pdf
sorry for the delayed response - I didn't see a response until just now.
Any advice you can offer would be much appreciated!
Also - if you could give the reasons why we should never sell minerals that would be appreciated.
The reasons TO sell would include: we only have rights to one area so it's all or nothing whereas an investor in multiple properties is hedging their bet - sure, most of the areas will pay off for much more than what they pay to acquire them but some areas will be a total bust. Sort of like the bird in the hand theory. (or am I wrong and is it extremely likely that if someone is offering then it will certainly pay off??) another reason TO sell is because you can take the money and invest it elsewhere.
That Silver Tusk well producing 700BBL in 24 hours w/ an 18/64 choke is impressive
Abstract # is A-102 A. Dykeler Survey
Sanford,
You're in a good area for future development.
Burleson County Texas A-102 and surrounding area:
Clint Liles
Now we're being offered 50% more than last week. This is incredible...
Someone has some info about the area that is very good.
Clint Liles
Sanford S said:
Now we're being offered 50% more than last week. This is incredible...
Whatevers being offered you can expect at least double and i would venture much more in future royalty payments. The reason you shouldn't sell is drilling technology will only get better, and those minerals will more than likely benefit generations to come. Good luck. Good to see your posts again Clint. :)
Not so incredible, I have negotiated offers up to 30 times the bonus originally offered and the royalty up another 2 percentage points in about 5 days.
Sanford S said:
Now we're being offered 50% more than last week. This is incredible...
Currently being offered $4,250/net mineral acre. Comments thus far are very much appreciated. We plan to sit tight for now but this is very tempting.
