Replies to This Discussion

Permalink Reply by PN on June 5, 2010 at 5:19

that's the issue I'm worried about. That's primary reason iIsigned up at this site. The guy who offered the 2k said they're taking risks - which I agree they are - and are looking at this as a source of annuties. But I can't help thinking if they're offering 12 k then they see good potential there for possibly quite a bit more. I would think no one plops down 12k w/o doing some research.


I don't mind losing some potential money over the long haul -even up to double - for a sure thing now. But don't want to get fleeced. .

• ▶ Reply

Permalink Reply by Two Dogs, Pirate on June 5, 2010 at 17:19

Unless you are about to lose the mineral interest, then my advise is to say "NO". A lot of the mineral buying activity is through the mail. Many of the documents that they send out cover lands in areas that the potential seller would not even have an interest. I have read mineral deeds that covered the whole parish. A mineral deed needs to describe the exact interest that it covers in whatever description is provided for in the deed into the Grantor. You may be selling something that you didn't know you had with some of these mineral deeds.

• ▶ Reply

Permalink Reply by PN on June 5, 2010 at 18:05

I underssand to a degree esp re spellingout exactly what the doc is referring to. However in an anecdotal way if it doesn't name land I own and I sign it, whatis the downside? Seems they would be paying me for something I don't own.

• ▶ Reply

Permalink Reply by PN on June 6, 2010 at 3:09

So Two Dogs is a landman? Good to know.

• ▶ Reply

Permalink Reply by Kat Bloomfield on June 6, 2010 at 3:45

and Two Dogs is one of the good ones

• ▶ Reply

Permalink Reply by olddog573 on June 6, 2010 at 3:58

wasn't it two dogs who said he delivered a huge check to a person who didn't know they had minerals? unless i was just in desperate need for the money, i wouldn't take the chance. just because you think they may be paying you for something you don't own doesn't mean you don't own it.

• ▶ Reply

Permalink Reply by ALongview on June 6, 2010 at 4:04

We have been "discovered" by company's land departments on roughly 18 net acres in 4 different tracts in San Augustine and Sabine Counties all of which has been leased and all of which were previously unknown to us. It happens.

• ▶ Reply

Permalink Reply by PN on June 6, 2010 at 6:15

Desperate might be a good word. I don't mind losing some money on the deal - even 2 for 1- to circumstances. But I don't want to lose 10 or 20 or worse to 1. Then I'd have to rethink some things and consider short term losses vs possible (only possible) long term gains. Hence the need for as much info as possible.

• ▶ Reply

Permalink Reply by Mac Davis on June 6, 2010 at 4:20

if it doesn't name land I own and I sign it, what is the down side?

Lots of leases and other contracts have terms that require you to "defend the title" or something similar. You may be on the hook to pay damage and/or legal costs if you don't own the mineral rights. You could lose a lot more money than you get.

• ▶ Reply

Permalink Reply by PN on June 6, 2010 at 6:58

Assume the language on the lease is correct or I can get it modified to accuartely refect what I own thus taking the unknown out of the equation.

With that being said, I'm trying to get an idea of how much or in what range are the monthly royalty payments on a pretty decent - but not necessarily a top producing- well? Is there a site that I can get that type of information? I know those are pretty vague terms but I'm hoping there's someplace I can get somewhat closer to that type of information.

Do you know of anyone who has gotten royalty payments and if so how much were they per acre?

• ▶ Reply

Permalink Reply by DJG on June 6, 2010 at 7:21

They way I look at is, how bad do you really need $12K, or even $16K right now. If it means you can get that new kidney you need, or that you can pay off the bookie so as to not end up wearing a pair of cement shoes, then I would say that the money has some real value right now.

That caveat aside, I don't see many scenarios where whatever I would buy with $12-$16K today would offset the risk of losing out on the potential of 100's of thousands of royalty in the long-run of the production of your unit.

Everyone, of course, has their own unique set of needs and desires.

As long as people are making informed decisions as to exactly what they are selling, it is a personal decision as to what to do. My problem is that in some of these scenarios, folks are getting scammed by the likes of Cobra, or they might not have properly assessed exactly what the real long-term value of their asset is before cashing out for pennies on the dollar in the short term.

• ▶ Reply

Permalink Reply by PN on June 6, 2010 at 7:26

It's the upside potential I'm having difficulty assessing. If it's 100's of thousands that's one thing. If it's just 25 to 50k over long period of time then that's another story altogether.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page