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.