I own several hundred net mineral acres in 3 Colorado Counties. I leased them all in 2011. Now I am receiving offers to purchase those same acres from different land companies/landmen. Why? What would they do with them?
Pardon my ignorance, but I am a relative newbie to all of this. Thanks for your insight! I really appreciate it.
They want to be in a position to collect the royalties should your acreage be drilled or end up in a producing unit.
Brooksye:
Could you be more specific as to the exact location of your mineral interests? This will important in determining if your minerals are located within a Shale Play area. I am not completely familiar with Colorado but I believe the Niobrara Shale Play is one currently area.
Brooksye,
This is an indication that you leased too soon and at too low a bonus and below what the industry valued your acreage. Industry is now trying to buy more of what you control and I doubt that they are making the offers to benefit you. Mr. Sadler is not wrong but they could also be buying down your lease position with unspent acquisition budget. Best get some professional help and formulate a business plan with an advisor before seriously considering the sale of the remainder of your minerals. With several hundred acres, you are in the driver's seat. This time you can make some demands and get them. Remember that you still have a very complex asset to deal with. Make it in your best interests.
I agree about the Niobrara formation shale play, since the discovery of this particular zone, the intention is to see how far south this zone is; I live in NW Elbert county and the same energy companies/landmen, agents, have been moving quickly to get landowners/mineral owners to sign oil and gas leases for the possibility of future drilling. I would never sell mineral rights you currently own- in the event drilling occurs in the future, that could mean income for you. Always talk with an experienced attorney in this field of oil and gas and mineral rights. We own half the mineral rights on our property, and come Sept. 2012, seismic tests will begin on our land and adjacent lands as well, and that info. will help determine whether future drilling will happen.
Thank y'all for your helpful comments. I have 45 acres in Lincoln County, 40 acres in Cheyenne County, and 550 acres in Kiowa County. I have been told that this is an unconventional shale play on the Mississippian formation, but I do not know. I probably did lease too quickly last yar and for too low a bonus, but there had been no activity for decades. Other postings on the county group sites indicate that there are very few landmen hanging around the courthouses in those counties these days, when they had been all over just a few months ago.
Hi Brooksye- If you do decide to sell, I would tell you to list your properties on EnergyNet.com. I have also sold some minerals in Lincoln County and sold via EnergyNet. They list your minerals for a small commission but list your minerals in an auction setting. The buyers on that site will continue to bid on the properties until the price you want is met. If the price you want isn't met, then you continue to own your minerals, or decide to list them again with EnergyNet. It was an excellent descision because you have multiple people bidding for your properties. I would highly recomend! -BB
The fact that you have properties in both Lincoln and Cheyenne counties buoys my hopes for property I own in Southwestern Kit Carson County which borders on both the counties above. We have not leased this property in several years and despite one offer to purchase my mineral rights earlier this year we have not heard from anyone else about leasing recently. Of course I am not interested in selling my Mineral Rights but would be interested in leasing-what should I do?
Our family member has mineral rights holdings in Bent County, CO. The Land & Mineral Company-Texas, LLC representative, Tyson Delay has made an offer to lease mineral interests for oil/gas exploration. Richard Hawpe, another agent, has written of his interest on behalf of Land & Mineral Co. No contacts have been signed.
No recent contact has emerged for many weeks. Do you know any details of the status of these offers? Are they a substantial firm? Do you know these representatives?
They seem to not be available via telephone and have not communicate effectively.