We received an unsolited offer to buy our mineral rights. The amount they are offering seems low to buy our mineral rights versus leasing them. It seems like there must be "something in it for them". Has anyone else received these letters? It seems like it would be wise to hold on to the rights and see what happens. At the same time, we don't want to lose our window of oppurtunity on the money...
I have been solicited by both Chesapeake and Vantage to buy out minerals that I own in their own operated drilling units in Tarrant County. If an operator like Vantage, who presumably is operating your drilling unit, is offering to buy your minerals, you can be pretty confident that there's something in it for them. Most likely they have future plans to drill additional wells above and beyond what is already in the ground right now. So, while the offer may (or may not) look attractive based on the current production and the current royalty income being generated, it may be low when you factor in the future wells that are planned. That said, there are no guarantees of future wells being drilled and a lot of people see value in taking a lump sum today versus bits and pieces over time, so if you fall into that category, negotiate the best deal possible and do what you need to do.
Each time you throw that letter away, the next one will be larger. But do not sell your minerals. Best to keep your mineral rights and lease them to the Production companies. They said in the 80’s in West Texas that drilling was dying there and now there having another big boom out there, with new techniques and new fields they say that in 2014 1 million barrels of oil a day will come from there. Each Barrel holds 44 gallons, that is a lot of Oil. So do not sell you minerals today for a big check, when you could be getting checks for the rest of your life and the lives of several of your descendants, as you can leave your mineral rights to your Heirs in your will. My Grand Father’s Mantra was “Never sell the Mineral Rights”
I Receive one check from two wells in Tarrant County both Chesapeake Property. $400 last year. But like the man says above here, when the price of Natural Gas gets high enough, they will be back drilling again, and more money will come in. That is for just about 2/3’s of an acre. Again do not sell minerals. Chesapeake has formed a Division to buy up minerals also, and many that are not with it will sell theirs away, not knowing that these wells will pump for many years. I’m receiving checks from minerals that were drilled in 1923 today.Yes of course the wells have been cleaned out and some re-drilled, but that was the first time they were leased. This is a Funny the Bass Bros. Sold several hundred Acres in 1989 and let the minerals go with them, thinking no body would ever drill in Fort Worth, WRONG, they also have a company purchasing minerals in Tarrant County.
jennifer, Just one more thing, If you do think about selling your minerals, you will want to consult an attorney, and this is why. The Big Print Giveth and the Small Print Take it away. While they may say they just want your minerals in Arkansas and Tarrant County, in the small print they may say your selling all minerals you have, so just to be on the safe side, you will want a Oil and Gas Attorney to look over any contract. God Bless and continued Success in all Endeavors Chris