Have dismissed letters and not answered calls. Until recently. After call, received requesed emails with run down of our conversation which started with no Operator activity on our property.Also received docu sign contract with offer. $7800 per acre to buy rights. This is 1st actual offer. The man seemed to have done his research before calling.
I’m not sure how to research my area specifically to get an idea of anything going on or planned. I know our neighbor next door has Gas storage tanks on his property. They are fed with pipes from a well (or looks to be one on map).across the road thats in front of both our properties, down our property line to tanks. This happens before we moved here. There doesn’t appear to be many wells in our section. And my neighbor claims they havent been out to collect any gas in a while. Possibly that well isn’t producing as it was.
One question would be why they want it. With his assumption of no surface activity on our property. Am I wrong to assume the payoff would have to be from horizontal drilling or the removal of gas from under our property thats connected pool?
What’s a legitimate resource for getting more offers? Like list on a auction type website or just contact companies individually..
If we decide not to sell… other than just doing nothing and just retaining rights. Continuing to seek adviceand research. What other type offers could I ask for if any?
Theres no wells on our property and we do not receive royalties.
And information would be appreciated. We’re very new to this.
if you are in sec 16-16N-16W, Chesapeake-now Expand- was leasing in 2024. They have an active horizontal well. You should be getting royalties on it. You probably mean oil storage tanks. Gas is transported via pipeline, not stored in tanks from a well. Section 16 has room for several more horizontal infill wells. Suggest that you contact Expand’s Division Order department and see why you are not getting royalties. The well was drilled in 2009-10. Offers that high indicate that someone knows something about future drilling.
If I sell. The upfront bonus is all I would get for at least 10 years? (No matter what)
They would be buying that (mentioned) 20% stake when/if it comes time that a well produces?
Hypothetically if an operator drills and starts producing. The owner of those rights would get 20% royalties? And operator gets the remaining?
I know theres a lot in between all that happening.
I am no expert but what ever they are offering is probable way less than 15% of the actual value. I would sit tight unless you are planning to sell your property soon. Best wishes!
if you sell, the sales price is all you will get forever as you will hand over your mineral ownership and the deed is done. You may also have capital gains issues. You will also forfeit any royalties that are being held in suspense at the operator. It is the mineral owner’s responsibility to contact the operator to get into pay status upon a sale. Suggest that you contact them immediately before contemplating the sale.
If you sell, then you will lose the 20% royalties that would come with the current well and any future 20% royalties from any infill wells. Operators frequently drill a first horizontal well to test the acreage and hold it by production. If economic, then they may come back in later and drill infill wells. Think of cigars lined up in a box. You would lose out on those future wells.
The increasing offers are a hint that several someones know what they think is about to happen. In general, those offers tend to be for a discounted cash flow return of about 3-5 years of pay on the current well. They plan to make a profit on the remaining life of that well and any future wells. Our family chooses to hold acreage where there are active horizontal wells with potential for future drilling. We think generationally, not just this year and one well. Up to you to decide what your financial picture looks like. This business has risk, so no guarantees for future wells, but given what is surrounding you, they look likely.
Hi Ms. Barnes, this wasn’t my question but I just wanted to say thank you for all the information (and depth, and “things to think about”) that you provide to people on the site. You helped me identify some things earlier this year that I don’t think I’d have ever found otherwise. Many thanks! Kim (aka LouMamou)
Thank you ….I did reach out to Expand about current well. Heard from a couple sources old well hasn’t been doing much at all lately. With that said any funds in suspence would come to us. And would be in any contract we consider.
Would horizontal drilling near by (not on my property) keep Louisiana prescription from happening? Assuming a new well is producing.