I have a client who has been offered a very minimal amount ($100) to surrender her mineral rights (only 1/4 of a 3/8 interest) in a particular piece of property located in Montague County, Texas. The property is described as follows: 80 acres of land, more or less, being all of the East 1/2, of the Southwest 1/4, of Section 1, Jack County School Land Survey, Abstract 390. Would anyone on this forum know whether or not this particular area is seeing development activity and/or have any idea what a mineral rights interest like this is potentially worth? Thank you.
Joe:
I believe that Montague County consists of the Barnett Shale play. I'm not sure about the current acitivity in this county but the offer sounds "off the charts" low. In regards to the potential worth of these minerals, I would contact Mr. Gary L. Hutchinson, another individual on this forum, as his business involves mineral appraisals.
Thank you Charles. I appreciate the lead.
One shouldn't relinquish any mineral rights until you get a geologist to ascertain its value. The price you stated is not even in the ball park for a reasonable offer.
Hi Joe,
1/4 of 3/8 of 80 acres is quite a nice interest anywhere in Montague, and at that price I'd buy it myself ;-)
No, no way. Might as well give the interest away. There are a lot of minerals in this area, and not everything has been explored yet. I have 100% of 160 acres minerals south of Nocona, presently unleased but with many old (plugged) wells and good prospects, and am just waiting until something interesting comes along.
My mother used to say that you should never sell mineral interests - they cost no taxes and can only appreciate in value - and I can only agree.
Thank you Andrew...sounds like good advice.
Andrew Pietraszkiewicz said:
One shouldn't relinquish any mineral rights until you get a geologist to ascertain its value. The price you stated is not even in the ball park for a reasonable offer.
all replies are good advise...... Montague is hot ..... keep it