# San Saba Royalties
**URL:** https://www.mineralrightsforum.com/t/san-saba-royalties/68116
**Category:** Leon County, TX
**Created:** [September 28, 2022, 12:24am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116 "2022-09-28T00:24:40Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [September 28, 2022, 12:24am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/1 "2022-09-28T00:24:40Z")
Hello. I have a natural gas well, McBride Gas Unit No 1, that was drilled in 2009, replacing one drilled in the 1950s. My checks average $900/mo. The offer was for $178,000! That seems crazy. What do they know that I don’t? My % of revenue is 0.00636975.
Thanks.
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### Author:  [@Clint\_Liles](https://www.mineralrightsforum.com/u/Clint_Liles)
#### Post date: [September 28, 2022, 1:02am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/2 "2022-09-28T01:02:05Z")
Are they offering you that much for your mineral rights in Abstract 326 or for your interest in lease #282970?
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### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [September 28, 2022, 1:19am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/3 "2022-09-28T01:19:03Z")
For the lease! Seems high. Never thought I’d say that about an unsolicited offer.
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### Author:  [@BlackGold](https://www.mineralrightsforum.com/u/BlackGold)
#### Post date: [September 28, 2022, 1:54am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/4 "2022-09-28T01:54:39Z")
Seems high, right? I do see at some of the auction people paying 10-15 even 20x revenue. That seems optimistic to me, but I see them do it. So that is definitely in the ballpark of what I see people pay. Never take the first offer. You could also put it in one of the oil and gas auctions and see what it fetches. Some people say never sell, but in cases like these, maybe you can put a big chunk of money to good use vs waiting 15-20 years to get at it.
Who knows where gas prices will go? Seems like we’re up 3-4x vs just a year or two ago. Europe cut off from Putin and cold winter in Asia and Europe could create some real issues on prices, in a good way for owners. So do you want a sure deal and a check this month, or are you a gambler for higher prices in the future?
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### Author:  [@fjonesiv](https://www.mineralrightsforum.com/u/fjonesiv)
#### Post date: [September 28, 2022, 2:28am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/5 "2022-09-28T02:28:12Z")
@Mrsz1ppy these mass mailout offers are rarely, and I mean once in a blue moon, within 25% of market value for your minerals. The answer to the question of “what do they know that I don’t know” is usually “a lot.”
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### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [September 28, 2022, 2:30am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/6 "2022-09-28T02:30:56Z")
Right? I could invest it and get close to my average check amount.
Specific language says “0.006370 net interest in production in the Crescent Pass Energy McBride G.U. No 1, Leon County, TX. $178,936.17
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [September 28, 2022, 11:47am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/7 "2022-09-28T11:47:09Z")
What they really want is the royalties from the current well and any future production plus any production from future wells.
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### Author:  [@NMoilboy](https://www.mineralrightsforum.com/u/NMoilboy)
#### Post date: [September 28, 2022, 3:21pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/8 "2022-09-28T15:21:08Z")
Comstock made a huge well near the Leon/Robertson border. This year. Cotton Valley. So now they and Aetheon are drilling there. The theory I have heard, from people who might just be grasping at straws, is that this extends into Leon County as well. Still a pretty good ways from you.
I could sorta see where somebody buys your current production at 0% discount rate and just banks on the upside. But there is no obvious upside coming anytime soon.
IMO, we tend to give mineral bros way too much credit. What they know most of the time that other people don’t is very very very very little other than the market. They don’t have any super secret tech, they just know somebody who might pay 10% more for that acreage that is not going to get involved in the ground game on minerals. And that person may not know anything other than that they have $300m to invest in minerals and they get $0 if they don’t invest it.
If wells get drilled here, this is worth more than the $5300/NRA they are offering you. If wells don’t get drilled here, it’s worth less. There has not been a horizontal well drilled in Leon County in the last 3 years. Anywhere.
So if you want $178k, and you are not patient enough to see if anything happens in the next 5 years, go nuts. IMO.
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### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [September 28, 2022, 5:32pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/9 "2022-09-28T17:32:36Z")
Thank you to all who replied. I went and checked the County deed records, and San Saba does flip some of their mineral acquisitions. I guess my next question will be what amount is their commission?
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 28, 2022, 7:33pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/10 "2022-09-28T19:33:51Z")
That Comstock well, the Circle M Allocation 1H, is probably a Haynesville well, as the TVD is 15,978 feet. It’s produced 2.7 BCF of gas in its first 92 days of production.
It appears that Comstock has made a huge bet on Bossier/Haynesville in Robertson, Leon, and Freestone Counties via leasing and acquisitions. Their recent press release indicated they had acquired 60,000 net acres via acquisitions in that area, plus they have leased more than 8,000 gross acres in Robertson County. A leasing entity named Surprise Valley Resources has leased about 50,000 gross acres in Leon, and I think it is quite likely that they are leasing for Comstock. If they are, then Comstock controls almost 120,000 acres in the three counties.
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### Author:  [@NMoilboy](https://www.mineralrightsforum.com/u/NMoilboy)
#### Post date: [September 28, 2022, 7:33pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/11 "2022-09-28T19:33:56Z")
They probably don’t make a commission as probably buying on their own behalf. Profit comes when they sell to someone else.
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [September 28, 2022, 7:34pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/12 "2022-09-28T19:34:07Z")
This does not work like home real estate sales and there is no “commission.” A mineral owner sells at an agreed price. These companies buy some minerals for their own account and some to sell, but at their own risk. They may have acquired other minerals in the same Section or well and plan to put together or sometimes they split a larger interest into small pieces to sell. You pay a fee if you sell through an online auction or if you hire someone to market your minerals.
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### Author:  [@NMoilboy](https://www.mineralrightsforum.com/u/NMoilboy)
#### Post date: [September 28, 2022, 8:08pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/13 "2022-09-28T20:08:54Z")
Maybe it’s Haynesville. Not my deal, other people told me it was CV consolidated. Upper Jurassic something, not a huge difference between it and Haynesville depth. It’s a real big well.
I’d guess they’ve been leasing for peanuts. Takes a long time to go from a single big well to developing/exploring 120,000 acres. I don’t see the math in buying spec minerals at $5k/NRA in Central Leon. But, y’know, things change and it’s my understanding that it’s pretty hard to buy minerals anywhere these days so maybe need to swing for fences. You’d be pretty rich if you bought Howard County minerals in 2016.
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### Author:  [@Alan\_Herrington](https://www.mineralrightsforum.com/u/Alan_Herrington)
#### Post date: [September 29, 2022, 11:49am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/14 "2022-09-29T11:49:59Z")
Your well is located in the GH Gordon Survey, A-326. That survey is in the Surprise Valley leasing area that I mentioned in another post. That could become a really hot area in the not-too-distant future.
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### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [September 29, 2022, 2:27pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/15 "2022-09-29T14:27:28Z")
Thank you, Alan, for commenting. I went and read your other posts. I think you are on to something!
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### Author:  [@Rts74429](https://www.mineralrightsforum.com/u/Rts74429)
#### Post date: [September 29, 2022, 10:45pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/16 "2022-09-29T22:45:03Z")
You never know what will happen but if Ukraine is a Vietnam to Russia this could last a long time. In selling it’s not just about you but your kids and the future. If you sell it’s never going to come back to and the oil and gas are always going to be in that ground. I would keep it and draw your check 178,000 does not last long.
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### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [October 25, 2022, 7:33pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/17 "2022-10-25T19:33:43Z")
Got a call from San Saba today. Their institutional client has upped the offer to 185,000.
I’m holding on for the ride.
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### Author:  [@Mrsz1ppy](https://www.mineralrightsforum.com/u/Mrsz1ppy)
#### Post date: [October 29, 2022, 10:05pm UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/18 "2022-10-29T22:05:45Z")
Got 2 more offers from 2 different mineral buyers. One was very low—$20,000 roughly, and the other non-specific.
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### Author:  [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [December 26, 2022, 2:50am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/19 "2022-12-26T02:50:39Z")
I know a lot of people that are getting all kinds of offers to buy minerals in Robertson and Leon Counties. It’s a constant flow of offers for several people and through general rumors! I’ve been around oil and gas leasing for many years. There is way more “leaking” on this play in that area than I’ve seen in many years. Brokers, landmen, and probably within oil companies, service companies and others.
I also would add that I think there is a huge mistake made with such a low percentage of ownership in the unit. The “bonus money” offered to mineral owners in this area was insultingly low by Surprise Valley who is the broker for Comstock. This is an old Cotton Valley Reef play that took place when horizontal drilling could not be done at those depths at that time about in the mid 1980s.
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### Author:  [@Kenny\_DuBose](https://www.mineralrightsforum.com/u/Kenny_DuBose)
#### Post date: [December 26, 2022, 2:54am UTC](https://www.mineralrightsforum.com/t/san-saba-royalties/68116/20 "2022-12-26T02:54:48Z")