I own mineral rights in Houston County, Texas and would like to sell them. I have been offered $1,000 per mineral acre on 82.5 acres in the Daniel McClean Survey and 16.75 acres in the J. Cutler Survey. These are in the Grapeland, Texas area. Is this a good offer?
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First be sure you own 100% in those acreages and if you do own that many NMA then no that number is more like a lease per NMA some folks are getting. You should check around as there is some active horizontals being drilled in your area and you could stand to get much more and for a long time if you retain them and just negotiate a good 2 or 3 year lease. I am sure others on this forum could guide you to someone who can evaluate what you have and advise you.
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We have rights in the John Eden’s Survey there in Houston County and our highest recent offer is $4,300 per NMA
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Patsy, I hate to see anyone sell their minerals. Mineral buyers know what they are doing. They seldom overpay. They intend to make a minimum of 3x on their money and often make 10x or more. Unless you have an immediate desperate need that cannot be met any other way, I would keep the minerals.
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All good advice from the participants. I agree that it more closely reflects current and recent LEASE offers. I have a dear friend that owns in the area and has actually been drilled on and everything indicates that significant activity is headed to that area. That said, they are deep and expensive wells and will have to be prolific producers at current natural gas prices. Regardless, I would not consider selling any minerals at this time because there is a lot of information that is forthcoming to make a more informed decision.
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NO, it’s not a good offer. As other have said, it’s MAYBE one-fourth of a good offer, and, unless you REALLY need the money, lease. don’t sell.
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Thanks for your reply. I would be very interested in finding someone who can advise me in this matter.
Thanks!!
Thanks for this information!
I appreciate your input.
Expand Energy drilled the Bob Yancy Deep well northwest of Grapeland! Cost roughly $30 million to complete. Still they are hiding the production figures. Go to Expand Energy on Google and go to the Leasing tab on top and identify your minerals and see if they respond.
If the offer is to purchase your minerals and they are in the Grapeland area, then that is a “lowball” offer. If it’s to lease your minerals, then depending on the other terms of the lease, $1,000 per acre is a good offer. In April, I received a letter offering up to $6,800 to purchase minerals I own in the John Edens Sy., depending on the percentage of the royalty that had been negotiated with Drake Exploration.
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I received the same offer for our John Eden’s Survey minerals.
Patsy1 I would like you to look at these offer letters my wife received last year for purchase of our mineral acres in Freestone County. Please ask a lot of questions and research everything extensively before you agree or sign anything. I hope this shows you what you really have and if they offer this much what they must be expecting to get once they obtain your minerals. We opted to just stay the course and now have 2 recently completed gas wells we are waiting on final frac and sales. Offers.pdf (211.8 KB)
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An old oil and gas axiom is “The Meek Shall Inherit The Earth, But Not The Mineral Rights”. Instead for relying on coffee shop gossip about what you the values are, I would suggest tat you put together a prospect evaluation and place it on Energy Net website. Its the largest and most widely used for oil Oil and Gas Industry as well as the public, that’s you. Energy Net is what I’ve used to sell the mineral interest that I’ve owned and have always been pleased. I can not tell you how many times that a formation will meander or a property line will place you in or out for an AMI (Area of Mutual Interest) for companies as well as Mineral/Royalty buyers. There are gottchas in conveying interest that could turn a pig into a poke.
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