Just received an initial offer to sell mineral rights from Triple Crown Acquisitions. I am totally new at this and wasn't for certain if I even had any claims to mineral rights from inheritance. The company has a lot of accurate information from my now deceased father and step-mother (no other children). The property in question is part of the James Rowe Survey, A-585 in Shelby County Texas. Through internet search, I found that XTO Energy has applied for a Recompletion permit dated April 8, 2013. I have several questions, but the main ones are; 1) does anyone know anything about this company Triple Crown? 2) They want me to sign over the rights before a clear title search is done with a clause of the right to redraft offer ($45,000) 3) If the permit is for Recompletion, has production ever been done at site (Carthage field, Haynesville Shale), 4) What are the tax liabilities of selling?
First, do not sign anything. Take a deep breath, step back and prepare to do your homework if you don't want to be taken for a ride by the endless parade of hustlers, swindlers and crooks who want to "buy your mineral rights" or sign you to a lease. They are all lowballers and lease flippers, trying to get rich quick by preying on the ignorance of new mineral owners. I've never heard of Triple Crown Acqusitions but you will also begin to get letters from Dale Resources, Woodcreek Resources, Aegis, Addax Minerals (some social-media-savvy kids from Texas, with no verifiable experience or history) and a host of others. Due diligence is your friend, take your time and learn the ropes. Search this board for answers to your questions and beware of helpful strangers on the internet. Sorry my friend, that's the way it is. Good Luck and be careful!
I am not going to try to even act like I got a hint of understanding on Mineral rights, but will give you some quick math on what I see on this offer...
Their offer is $45000
lets say that the well lasts 10 years which equals out to a offer of 375 a month or about $12.50 a day... that kind of makes it a little more down to earth $$$ on it... I just got out of a lease that was signed in 1944 and was drilled in 1949 and has produced since then.... aprox 63 years... at roughly last 10 years at $1200 a year with no work or recomplete...
63 x $1200 = $75,600
or 10 x$1200 = $12,000
I will bet with them offering to buy and a recent recomplete order in place there is some decent production coming from the formation you well is in at this time...
Like Dogbert said, Take a deep breath read up on here search the forum there is a ton of great info on here that can help you out...
If you don't need the $45000 for life and death situation sit down do some research, I bet the more you drag your feet the higher $$$ offers will be...
XTO and other compainies don't throw money down a hole for no reason or to loose money they know what and how much is there...
Thanks for your reply Dogbert. That sounds very wise.
Dogbert said:
Jesse,
First, do not sign anything. Take a deep breath, step back and prepare to do your homework if you don't want to be taken for a ride by the endless parade of hustlers, swindlers and crooks who want to "buy your mineral rights" or sign you to a lease. They are all lowballers and lease flippers, trying to get rich quick by preying on the ignorance of new mineral owners. I've never heard of Triple Crown Acqusitions but you will also begin to get letters from Dale Resources, Woodcreek Resources, Aegis, Addax Minerals (some social-media-savvy kids from Texas, with no verifiable experience or history) and a host of others. Due diligence is your friend, take your time and learn the ropes. Search this board for answers to your questions and beware of helpful strangers on the internet. Sorry my friend, that's the way it is. Good Luck and be careful!
Thank you Robbie. The offer is enticing due to health reasons of my Mother, but what you state is probably correct. Thank you!
Robert Pritchard said:
Jesse
I am not going to try to even act like I got a hint of understanding on Mineral rights, but will give you some quick math on what I see on this offer...
Their offer is $45000
lets say that the well lasts 10 years which equals out to a offer of 375 a month or about $12.50 a day... that kind of makes it a little more down to earth $$$ on it... I just got out of a lease that was signed in 1944 and was drilled in 1949 and has produced since then.... aprox 63 years... at roughly last 10 years at $1200 a year with no work or recomplete...
63 x $1200 = $75,600
or 10 x$1200 = $12,000
I will bet with them offering to buy and a recent recomplete order in place there is some decent production coming from the formation you well is in at this time...
Like Dogbert said, Take a deep breath read up on here search the forum there is a ton of great info on here that can help you out...
If you don't need the $45000 for life and death situation sit down do some research, I bet the more you drag your feet the higher $$$ offers will be...
XTO and other compainies don't throw money down a hole for no reason or to loose money they know what and how much is there...
I don't think that there is anything wrong with making an offer to buy someone's minerals, nor do I believe that makes them a crook. Some people appreciate the money up front, and don't want to rely on a well that may never get drilled. Be careful about relying on some of the examples presented. The fact is that the average life a well is not 63 years. It's much less than that.
I don't care for the right to re-draft. I would sell if you need the money, but tell them to call you back when they are satisfied with the title. Then ask for a cashier's check. Not a draft,
Jesse, I agree with Dogbert.....if you can hold off selling, do so. Over the last several years I have gotten well over 30 letters wanting to buy my minerals (one just yesterday). I was tempted to sell but I didn't and now will have multiple wells that will be completed in 2014.
I see that you are getting some input. Buying and or selling mineral interests always makes for spirited discussion. I have been intimately involved in the oil and gas business for 25 years as a petroleum engineer, investor, and financial advisor. I have bought and sold mineral interests, royalty interests, overriding royalty interests, and just about any other kind of economic interest that can be created from produced hydrocarbons.
Remember the old saying, "all politics are local"? Same here. Your situation is yours, and only generally like others, not specifically like others. Your circumstances are yours, ie, very 'local'.
Allow me to state what I bet you know in your heart, "Let common sense rule". If it seems too good to be true, it probably is. If there is lots of weasel language in documents, that ought to set off a few bells for you. Just because someone offers you $, you can bet that that's not the same as walking away from a closing wherein you are confident you've made a fair deal for yourself.
Take the time to find (and pay for if needed) quality counsel in these kind of decisions involving tens of thousands of dollars. Counsel as to determining fair value, and counsel as to determining fair language in transactional documents.
I don't think that there is anything wrong with making an offer to buy someone's minerals, nor do I believe that makes them a crook. Some people appreciate the money up front, and don't want to rely on a well that may never get drilled. Be careful about relying on some of the examples presented. The fact is that the average life a well is not 63 years. It's much less than that.
I don't care for the right to re-draft. I would sell if you need the money, but tell them to call you back when they are satisfied with the title. Then ask for a cashier's check. Not a draft,
Jesse, I agree with Dogbert.....if you can hold off selling, do so. Over the last several years I have gotten well over 30 letters wanting to buy my minerals (one just yesterday). I was tempted to sell but I didn't and now will have multiple wells that will be completed in 2014.
I see that you are getting some input. Buying and or selling mineral interests always makes for spirited discussion. I have been intimately involved in the oil and gas business for 25 years as a petroleum engineer, investor, and financial advisor. I have bought and sold mineral interests, royalty interests, overriding royalty interests, and just about any other kind of economic interest that can be created from produced hydrocarbons.
Remember the old saying, "all politics are local"? Same here. Your situation is yours, and only generally like others, not specifically like others. Your circumstances are yours, ie, very 'local'.
Allow me to state what I bet you know in your heart, "Let common sense rule". If it seems too good to be true, it probably is. If there is lots of weasel language in documents, that ought to set off a few bells for you. Just because someone offers you $, you can bet that that's not the same as walking away from a closing wherein you are confident you've made a fair deal for yourself.
Take the time to find (and pay for if needed) quality counsel in these kind of decisions involving tens of thousands of dollars. Counsel as to determining fair value, and counsel as to determining fair language in transactional documents.
my extended family have mineral rights in Reeves county 8 miles east of balmorea and two miles north of I-10. We have offer to buy mineral rights for $2250 per acres. Is that the going rate in that area.