I am getting really high offers on buying my mineral rights. Wondering what’s going on. My land is in Thomas Collingham Survey, Abstract 160, and Eddy SparksSurvey, Abstract 782. Thanks
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Reading the previous Leon County posts will answer your question.
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@Sam1 the general answer to your question is that Leon county generally is a relatively “hot” area due to the development drilling taking place there. Good wells are being made. And, there are boatloads of savvy industry people who are always in the market to purchase minerals from citizen owners who for the most part do not have the data or background to understand their value. That’s why you are receiving offers, offers that seem “high”.
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I thought I would ask again because the offers are getting a lot bigger.
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A man I know that owns 15 net. mineral acres in Leon County east of Marquez near Robbins has received numerous offers over the past year. Yesterday he said that he got an offer for $300,000 for his 15 net. acres in the 50 acre track! He has these leased for a !/4 royalty also.
At $2.00 gas, the well or unit has to produce around 25 BCF for ROI to occur at $20,000/ac & 640 acre unit. Something to be said for time value of money.
Natural Gas is not going to stay at $2 always. You don’t have the information to predict 25 BCF for the life of the wells. These horizontal well units are way larger than 640 Acres. What do you think that all these new LNG plants along the Texas and Louisiana Gulf Coast are being built? For $2 gas for the next 20 year’s?
LOL. It’s called economics. But you are correct. Today NG is $1.61 on the spot market. So it needs 25% rise from here to get to $2.00. And that’s not counting all the deductions. I used 640 acres as a reference knowing you couldn’t do the numbers but I made it so it’s proportional. You can fill in the numbers on your super calculator to get the numbers you want. If a well takes 20 years to make 25 BCF, no matter what the price, everybody looses. Especially your friend that didn’t sell his minerals at $20k an acre.
Yea, that’s why Comstock is drilling these $20 million and $25 million dollar wells, leasing and laying pipelines! Also many different groups trying to buy mineral interest and leasing in Leon County! Companies are building LNG plants all along the Gulf Coast. You can sell and lease any interest you might have for nothing, but don’t paint a bad picture for people that could use the money.
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My sister and I are getting multiple offers to sell our mineral rights in Leon County TX. Offers range from $3k an acre to $6280 per acre. Then I read in this blog someone was offered $20k/ acre in Leon County. How can us regular folk value our mineral right to know whether to sell. We are currently under lease with Surprise at 20% royalty but have not yet received a royalty payment
Can you give us an idea of what “really high offers” are for Leon County to purchase? How much per acre are the offers your getting?
Gas at $2 or less now, but has been at $8/9 in the not so distance past. I don’t think it stays at $2 forever, but who knows. I think if you are getting offers that means someone thinks it will go higher. Maybe they know more than us. At minimum I would call the land department at your operator and see at what price they would buy. I would also not sell it to the first guy that sends you a letter. Take it to auction and/or get an idea of what the auction houses see in the market and what they think they might get for it. I regularly see one guy send out these letters, then he seems to keep 1/2 and sell 1/2 of what he bought from you at the price he paid you, so be careful out there.
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When someone is offering big money for mineral they know they can make bigger money from them. No one is going to buy minerals to lose money. I heard of people bring in $10,000 to $15,000 per month on some of these gas wells. Stay the course and it will pay out for yall.
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Thank you very much!
There is a good chance that some of these people making the offers don’t have the money and are hoping they can get someone to “BITE” and they tie your mineral rights up and then try to sell the deal to someone else and get any override and a profit too!
@BlackGold:** I want to THANK YOU for your great EXPERT advice. My sister and I have recently received unsolicited competing offers to purchase our mineral rights. We then selected https://www.usmineralexchange.com (per your advice to go to auction house) to list our mineral rights. Sophisticated buyers pay 6% commission but the mineral rights listed are exclusive. Our stress level went down 100% knowing listing on the US Mineral Exchange will establish the Fair Market Value of our mineral rights in Leon County, TX in the location we have. Again - many many thanks for your advice. I highly recommend anyone receiving unsolicited offers to purchase (and complete novices like me), get their offers in writing and then list with an auction house. If you don’t get a higher bid, then you can go back to the highest unsolicited offer you received OR just hold on to your mineral rights for a while. Leon County is hot right now from what I was told.
I had an offer to sell my mineral rights in Leon Co. in the past 2 weeks that was way more then most offers.
We are just across the Leon County line in Robertson County off Hiway 79. Our first check was last August. We were getting multiple calls every day and offers in the mail daily until the checks started. Our lease is with Aethon for 20%. Checks are bring home 20k a month on 74.6 acres of minerals. Are we ever glad we didn’t sell!
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What an offer “boils down to” is what will be the actual amount of dollars that they will pay you by a cashier’s check at the same time you sign their contact!