how is price of mineral rights determined? Sell or lease?

5 months agoI was offered 1,500 an acre for mineral rights in La Salle county with 1/5th royalty, for 3 years plus 2.  I do not own the land.  Immediately after the letter, the company pulled the offer off the table.  No dscussion, no negotiating, no counter offers.  We have never been offered 1/4th of a million dollars, then told oops, not interested.   Someone said that the company researches these offers to death, knows what is there, otherwise the company would not have offered top price to begin with.  How are prices determined and what is going on?  It was a landman representing himself for Chesapeake.  He now said that Chesapeake is interested in east Texas only.  Any comments will be appreciated. 

Update: I found out today that the property is:  La Salle county Abstract  A 331 lot 4, survey , # 5. ( ??)  It is part of a 641 acre parcel.  I think that is how the r.r. co surveyed back then.  We have a 160 acres more or less but do not own the land.  Can someone tell me how to find out where that is on a map?  We inherited the mineral rights and did not know we owned them unitil the landman for Chesapeake wrote that letter back in July.   I have had quite a few offers through this forum.  People  want to buy the mineral rights and said if the property is south, I am probably in a donut hole and it is not worth much.  Of course they would buy it tomorrow for $1,500 per acre (they say) but one said I could get a lot more.  Should I consider that and what would be a good price? 

Thank you!

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Permalink Reply by gummipuppe on November 15, 2010 at 12:35
The property we have is in the Eagleford shale near Cotulla Texas.
Permalink Reply by DJG on November 14, 2010 at 15:42
Northern portion of La Salle county is situated nicely in the lower/Southern oil window for the Eagle Ford with recent well reports on completions falling in the 400 to 900+ barrels of oil range. Southern portion of the county looks to be in the wet gas window, which is also profitable production potential.

Your survey/abstract looks like it is situated in the NW region of the county so it would be likely that you are looking good in the oil window.

I wouldn't plan on selling your minerals, as the long-term prospects for your acreage should likely play out nicely for you and your family.

Good luck.



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Permalink Reply by gummipuppe on November 15, 2010 at 12:37
You are a prince! Thank you for the map and info.

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