Selling Mineral Rights - Harrison County, Texas

I have just received an offer from National Royalty Company to buy my mineral rights in Harrison County, TX. The offer was for appraisal value only. My question is, " Do you think this area will be producing anything in the future; and is appraisal value a reasonable offer? Thank you so much.

Typically these outfits that want to buy your minerals will send a draft and an offer to purchase your producing minerals. I receive these offers occasionally and they go directly to the waste basket. I would not know how you would get an appraisal on your mineral property, assuming if there is no production. Your statement sounds like you have no production currently. How would you evaluate what may or may not have any value? The Appraisal Districts in Texas assess mineral properties for ad valorem taxes only if they are producing.

Harrison County has been active with drilling activity in the Cotton Valley and Haynesville Shale recently, according to the TRRC W-1 reports. If you can disclose what Survey your mineral property is located it would be easy to tell what activity is around your immediate location. I would be inclined to hold on to the mineral rights.

My own opinion is that I would only sell minerals or royalty if in immediate need of kidney or other grave circumstance. Harrison County is well situated in the productive area for multiple stacked plays (Haynesville, Bossier, Cotton Valley, Pettet) and should ultimately be a VERY profitable long-term asset.

As temtping as some quick cash might sound, these offers are generally for pennies on the dollar of the true value of the minerals in question.

Dont sell… you will make more money in the long run than a lump payment… could be money to last your grandkids kids… Keep your mineral rights and lease for drilling and then get lease bonus and royalties… what would you rather get…1million now or 40K a month for the next possible 20 yrs or more!

Good Call Tim… yes dont wait 40 yrs to sell … And if they are coming to you with offers- probably not a dry hole… maybe back in the day when the technology was not there to find it, but now there is…Tim you need to not read into my response that much guy! Read it for the simple text that is there… in OTHER simpler words so you may understand me, dont RUSH to sell for what seems to be a BIG dollar amount when you might make more in the long run… and if you look at this guys picture he doesnt look that old so he has some time. Negotiate right, get a good lawyer and make it earn income for you if it can. Tims guy who waited 40 yrs sounds greedy and was possibly waiting for a large lease amount or something… the story doesnt add up. We have had offers as you and have not even waited that long… maybe a yr and now the offer is a good one, of course we are not greedy as some people have become. If your too greedy the oil companies will pass you by… probably the case for the 40 yr waiting guy… they could have blackballed him… I have heard of this through a friend of mine who buys leases for the big oil companies… And to address Tims whims on the 40k a month… I know of a few that are that big, and there is probably some that are out there that I dont know of… AS for ours… Tim… 40K a month dont sound right to you… ? We have half of that… so dont scoff at the figures until you have seen them on paper! Heck Ive seen a signing bonus for 900K+… course the guy had some good acrage, under 800acres… I know of one well in particular within 2 miles of our land that brings around 800brls a day… you do the math on that at roughly 75$ a brl and 25%RI and what do you get Tim? I wouldnt jump right on a 1million sell when I could save some for my family and kids to come by not being greedy… Ultimately know your case and only sell or lease when you are comfortable and know what is going on. Im sure Tim would agree with that.

Tim Metz said:

They just had a local auction where mineral right were sold. The guy that owned them didn’t sell them for that 1 million dollars and instead waited the 40 years he owned them for someone to start paying him that 40K a month, they were selling them cause he died, that’s right never sell who needs a million.

There are 2 sides to everything and if you think they all will make you 40K a month, I have a lot of minerals I’d sell you. They are not all 20 year barn burners and some are dry hole.

Kirk, ultimately dont just jump on any offer until you know fully what is going on, either selling mineral rights, leasing or what have you. Im sure Tim will guide you right with his cynisism, just make sure your edu-MACATED or he will talk down to you. You are lucky Tim that you have a venue like the internet to shoot your mouth off at people. Im sure you dont talk to people in person the way you type here in the forum, lucky for you. Im glad you have 35 years of knowledge about Oil… if it wasnt for people like you, who would I have hired to get me these big ol’ checks? Now get back to work!

Tim Metz said:


I understood your first response quite well, you replied with certainty to the persons question in the forum without the knowledge to make an educated response. Is that SIMPLE enough for you to understand? I am also sad to inform you in this day of modern technology that they still drill dry holes all the time. I was also using the dollar amount of 40K generically as you were in your first response and yes I know some people get royalties of 40k and more a month. You certainly did not understand the situation with the gentleman I made reference to, it had nothing to do with greed, that was something you read into it that was incorrect, you must have gotten lost somewhere making your elaborate interpretation of what was simply written. Also, there is no black list either.

By the way, I understand the oil field quite well having been in most aspects of it for 35 years from pipelines to roustabout, casing, drilling, completion and production to buying, selling and leasing minerals all over the USA

So whats your ploy here, really, “I know more than you nanny nanny boo boo”? Grow up. All I know is ignorance is bliss then, when I make more than you at doing pretty much nothing but what I want to. Go bother some one else with your self proclaimed oil smarts. I made a comment and if the poster didnt like it then he can say something or ignore it. I got your ignorance right here timmy… Tim Metz said:

Your ignorance is nothing for you to be proud of.