This is about 5 miles south of Toyah. Have been getting offers regularly to lease or purchase, but don’t know what are the going rates these days? There are quite a number of wells a few miles to our east in Block 54. I think some of them have production data uploaded to the RRC site, but I don’t know what are considered “good” production figures to know if the wells are economic successes? Also, how far away can producing wells be and still affect your land prices? I’m sure there are many variables, but I didn’t know if there is a general rule of thumb distance? Thank you for your help.
Tom -- what section might you be in... also, the Abstract Number would help (A-????). Later -- Buzz
In Section15. Thanks
Trying again. Does no one have knowledge of the area? Thanks
Tom -- my ownership map shows SEC 15 is Chevron minerals. Later -- Buzz
Buzz – how can I get an ownership map? Will it show active leases too? Thanks, Tom.
Hi everyone. Family has got interests in this area too. When I’ve contacted people who mailed us purchase letters I almost always get laughable initial lowball offers. I think many of them are trying to feel you out. They want to know if you are ignorant…if you are a new/newfound owner who will take just about any offer…if it seems like you need/could use “some extra cash.” Or if it seems like you are informed…know where your minerals are…know the basic lingo. Stay calm and listen patiently to their initial spiel about why your minerals “aren’t worth more.” Often they want to know what “number” you are wanting. I think they do this hoping you won’t know current rates and lowball yourself.
I’ve gotten initial purchase offers as low as $5,000. In years past even lower. More recently the offers have been much better. $20,000 was the most after back and forth calls and them going back to “talk to their investors”. $20,000 was a lot but still not enough for me considering what I’d be selling. Plus I want to know where they’re making their money. For example, if they’re going to buy for $20,000 are they going to turnaround and sell for even more?..Or lease it to an operator they know for almost half that and immediately recoup a lot of their expense? (Someone on this forum recently said he leased for $9,000)…Or maybe whoever you’re talking to will get a big commission on the sale…money that would otherwise have gone to you had you dealt with a different buyer.
If you didn’t know how the negotiation works you might get really upset later thinking how low their first offer was compared to how high they were actually fine with going. But if you want a better rate, you need to be willing to “walk away.” That may be hard for you to do considering you are talking about a lot of money regardless of the end number. That’s what I have always had to do.
I know everybody’s situation is different, so maybe “walking away” isn’t right for you as long as the number is somewhat decent. But personally I think you need your eyes on the future. What you have underground is not some imaginary, intangible asset. It’s a real valuable asset. An asset that is becoming more and more accessible and therefore more valuable as the technology gets better and the years go by.
Sorry for the rambling. Just some of my thoughts on the issue and what I’ve encountered from personal experience.
Randall -- very well stated, IMO. Later -- Buzz
hi all I also have land in blk 55 sec 18 township 7s is anyone getting offers currently?
We have minerals in Sec. 16. We have not been getting any lease interest; however, we are held in trust and are handled by a Texas bank. Unless a company is really serious about its offer, they generally don't contact professionals handling mineral interests (like banks). They know they won't get away with silly lease offers - probably won't get any response at all unless the offer is good. They also know that a sale is unlikely. So we'll probably be the last in the area to see an offer.