Replies to This Discussion

Permalink Reply by adubu on January 27, 2011 at 1:31

kathy--- everyone with royalty get these in mail all the time-- they are very low ball bids and what I call "Legal Thiefs" They have find print that they are also buying all your minerals in the county of record not just the one unit. They generally calulate price at mulitple X 3 of last years royalty and do not calculate future value of more wells and other formations that could be drilled. IMO stay away from them and put in Trash Can. Never Sell your minerals for they are as close to ATM you can get.

Permalink Reply by Kathy on January 27, 2011 at 2:20

I have no intention of selling, just interested to find out if other people get these.  This is a first for me.

Permalink Reply by GoRicky on January 27, 2011 at 7:34

I receive dozens every month, San Saba included.  I have never sold any to through-the-mail outfits.  I have been offered and have bought interests - and many times calculate that I would pay 1.5 - twice as much, if the same were offered to me.

Permalink Reply by RBH on February 1, 2011 at 14:55

FYI, San Saba Royalty Co. is tied/affiliated with Brazos Gas, LLC and several other related companies . I also have gotten several "low" offers from them.  go to www.texaslandrecords.com and check out Nacogdoches. Don't sale.

 

 

Permalink Reply by Bill R on February 25, 2011 at 10:13

Yeah... steady flow of low-ball offers for the property, mineral rights, or a percentage of either. We actually had one that 'threatened' to drill under our family property if we didn't consider their 'generous' offer.

IMHO - tell them to 'shove it in their collective ears!'.... from what I've found out about most of these companies is their offers are best used for lining the bottom of the cat's litter box. Keep an eye out for 'some shady landmen' as well... 99% are honest and above board, but that 1% can be snakes... check out everyone before you sign or agree to anything... if you can afford it, turn it over to a Lawyer to look everything over... and then ask about them on this site (there are some 'good' people here)...

Permalink Reply by Madman on May 13, 2011 at 16:57

I recently leased property to an operator drilling in the AC.  No drilling has occurred, but I am told it is imminent as the company recently went to the conservation board for approval of a proposed unit. 

Today I received an offer from a company offering to purchase a royalty interest - they want to purchase 1/2 of 5% (2.5%) of my 20% royalty.  This is the first letter of this kind I have received.  The offer is substantial compared to what we were paid by the exploration company.  Is this something I should consider? 

It seems like retaining 17.5% of the royalty might be a good deal with an upfront payment on a well that hasn't even been drilled yet.  I'm obviously very new to this, so would appreciate any insight you folks could offer.   

Permalink Reply by jffree1 on May 18, 2011 at 2:47

Madman, I don't have anything constructive to add concerning your offer but I noticed that you said "conservation board".  If your land is in La. you might try posting this same question in both the Austin Chalk Group and the Parish Group where the minerals are located.  It's very likely that others in the same area are getting these offers.

 

http://www.gohaynesvilleshale.com/group/austinchalk

 

http://www.gohaynesvilleshale.com/page/louisiana-1