My father left my other and I mineral rights for 1.68. My mother leased to Antero $5800 signing bonus and 15% royalities. Didn’t care much at the time after losing my father. Antero recently applied for pooling and initiation of oil and gas interest. Now we’re getting offers from different company’s at 10k per acre. Been 3 years since we’ve heard anything. So is this a good thing and should we sell or hold out for royalties?
Welcome to the forum.
Each family must decide for themselves what their objectives are. Most offers to buy are right before drilling. In my experience, most buyers have offered either a value for a certain number of years of production on already producing wells, but not the future wells. Some buyers offer something for the future wells, but not much. We have a longer time frame as we think generationally and decades in the future. We have not sold and have ended up making more in royalties than the original offer.
If you wish to share your location, then folks on the forum can comment on the activity in that particular area and their experience. You can sell, or not sell, or only sell part. If you only have 1.68 acres then you do not have much leverage. If you decide to keep it, make sure that your mom lists the acreage in her will or trust to allow it to pass to the next generation or to whomever she wishes to have it. Horizontal wells can last decades. Your acres are part of a larger spacing and may end up having more than one well on them.
Thank you for the reply. Believe most family members sold at the first offer. Land is part of a 45 acre farm, tract 4-5-27, Tyler County, WV.
@Slider-run would definitely hold off on signing that lease if you want to sell your minerals as many operators have Right of First Refusals (ROFRs) in their leases that kill the mineral value for any acquirers. Operators may try to put pressure on you (“If you dont sign this by this date we will throw you into the unit anyways”) but dont put too much weight into it as you can easily sell these without a lease.
Definitely try to search for other mineral companies “West Virginia Mineral Buyers” as the more offers the better
Wish you the best!
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My mother signed a 5 year lease with antero. Git a notice they setting up a horizontal well. We’ve had 3 different offers for 10k per acre and sn offer from antero stating they beat anyone. I’ll read through the contract again and see terms of royalties.
Think longer term than just one well. There may be more than one.
If you are capable.. NEVER SELL.
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Totally 100% agree with you about this
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@shawn_caine Just from my Twenty-Five years as a Petroleum Engineer in West Virginia, I would never sell but hopefully you have an older Petroleum Landman who will explain the pros and cons to horizontal drilling in West Virginia and the lease document to you along with showing you proposed development maps.
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Thank you for the straight forward answer. Seems I need to expand my knowledge on the subject. The lease renewal is coming up soon.
Why not? Do you say this about other investments you have? Residential real estate, commercial real estate, stocks, gold, silver, etc?
Me myself I would never sell them I live in Marion county Wv if you lease though make sure it’s a no deduction lease because on 1 -2 acres you will lose over have of your check