We recently have received a second offer to purchase from Bridgepoint Mineral Acquisitions.
Also received an offer to purchase in the mail from Southwest Petroleum. We are in Section 19 6S 1W Love County. We are not in the area. Trying to make an educated decision. Any info or feedback on activity in the area would be most helpful. Contemplating a trip out to see for our selves. Thank you!
Kerri:
These offers to purchase your minerals are most likely low ball offers and should be totally disregarded. I have received offers over the years from Bridgepoint and know for a fact that their offers are extremely low. If you want to read previous posts regarding this and other potential buyers, google this in the blank space on the main "Forum" page and read multiple responses from others on this forum. These type buying operations know much more about the area in question than you and their goal is to make money off of your properties.
Kerri, I agree with Charles. I won't say that nobody ever got a fair offer from Bridgepoint but if they did it was probably an error on Bridgepoints part. and I doubt they honored it.
If you just want an outing, by all means go see the acres, but if there isn't already wells or someone preparing to or actively drilling your acres, there may be nothing to see. They could even be horizontally drilling and your acres could be half a mile away from the wellhead and not much to see but dust and traffic.
Your best research would probably come from the TRRC and joining the Love county forum on this site. It may be exciting but there is no hurry. The oil and gas has been down there for some time and will probably wait a few months more for you to get up to speed.
Thank you both for your replies. That is what my gut is telling me as well. I appreciate the input!
I actually worked with Bridgepoint on some acreage I owned in Grady a few months back. The guy I worked with was actually really nice and pretty candid about what he knew. He made no secret that the area was hot and that selling wasn't right for everyone. I ultimately decided to sell, the process was quick and easy and I had my money in hand within a week and a half. I was able to pay off my house and still have some money left over and plan to take some long over due trips. At the end of the day selling isn't right for everyone, but a guaranteed lump sum of money sure is nice and has made my life a whole lot easier.
Thank you David I have been in touch with Geoff Boyd and am trying to make a decision. Glad to hear something positive as well.
David Yantis said:
I actually worked with Bridgepoint on some acreage I owned in Grady a few months back. The guy I worked with was actually really nice and pretty candid about what he knew. He made no secret that the area was hot and that selling wasn't right for everyone. I ultimately decided to sell, the process was quick and easy and I had my money in hand within a week and a half. I was able to pay off my house and still have some money left over and plan to take some long over due trips. At the end of the day selling isn't right for everyone, but a guaranteed lump sum of money sure is nice and has made my life a whole lot easier.
I received two offers from Southwest Petroleum too. Called them up on the second one, specifically asked if they were trying to buy my mineral rights, they said yes. I told them, not in this lifetime, take me off your sucker list.
NEVER, EVER, give up your mineral rights.
Contact Flat Iron Energy Partners and see what they are willing to pay if you want to sell your mineral rights. Likely to get closer to their actual value with them.
No chance, I'll keep mine, thanks.
Bertram Sippy said:
Contact Flat Iron Energy Partners and see what they are willing to pay if you want to sell your mineral rights. Likely to get closer to their actual value with them.
Yeah never sell any land or a house or stock or a car either.
Sammie Jo said:
I received two offers from Southwest Petroleum too. Called them up on the second one, specifically asked if they were trying to buy my mineral rights, they said yes. I told them, not in this lifetime, take me off your sucker list.
NEVER, EVER, give up your mineral rights.
Apples and oranges!
How would you feel if you sold your rights and all of a sudden they hit big and you don't get near as much as you would have if you had kept your rights?
Go ahead, sell yours, how much do you want for them?
Jimmy Jones said:
Yeah never sell any land or a house or stock or a car either.
Sammie Jo said:I received two offers from Southwest Petroleum too. Called them up on the second one, specifically asked if they were trying to buy my mineral rights, they said yes. I told them, not in this lifetime, take me off your sucker list.
NEVER, EVER, give up your mineral rights.
In a place with the geology of Texas or North Dakota, only sell your minerals if you can receive a premium price per net acre and have done your homework on nearby wells, leases, and permitted wells. You also can sell you minerals and do a 1031 like kind exchange and buy other minerals, perhaps more acreage, and not pay any capital gains tax on the proceeds. Never sell your minerals, unless you can use the investment to buy other and or more minerals or another better investment.
southwest petroleum is offering a big $450 an acre, then you have to wait until they hit a certain amount of oil before you see a dime. I'd have to find the letter to dig out the exact figure, but, I think they have to hit another Spindletop before you'd get paid. lol
Offering 450.00 per acre as a lease bonus or 450.00 to buy the minerals outright? Either transaction should be "paid up", so the mineral owner receives the funds before any operations can begin. A lease of minerals includes a royalty for the mineral owner, a percentage of the oil and gas produced.
as a outright buy, then after they pull out so many barrels, they will start paying you something.
So they are asking to buy the minerals, but you would retain a royalty interest. Forget that!, if there is oil on your minerals, get an oil and gas lease and a royalty for production and keep you minerals.
Exactly. I'm in a different situation, where I live, in town, they are supposed to put 4 wells around us, so we are all in a pool, less than 200 homes and a few people refused to sign up. This nov, it will be 3 years since we leased, and they have just now started drilling one well, so, I thought that this is probably why we all got the letter, they know something will be hitting soon, I mean, why would they want to buy leases if there wasn't anything there
I don't expect a huuuge monthly check, probably about $200, but I'm still not selling out, and the lease is for both oil and gas.
I just looked at the paper Southwest Petroleum sent me, I was mistaken, they are just wanting to purchase for a flat amount, no royalties.
Here is their formula.
If you leased 5.0 acres for $300 per net mineral acre to the company who currently holds the lease, they will pay you 2.5 times the amount . Example, 5.0 x $300=$3,750.00. and that's all you get...............EVER!
Not happening!
A well can produce for many, many years...
Yes, and I wouldn't be getting any of it if it did produce, just the buyout money.
If your interest was pooled then you are entitled to the same terms as those who did sign the lease. Find out the specifics of who did in fact lease their minerals in the drilling unit. The Texas Railroad dept. I believe handles mineral wells. In order to get a permit, the majority of the drilling unit has to be under an oil and gas lease or purchased in order to even apply for one.