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Permalink Reply by Rock Man on May 17, 2022 at 16:23

That would be nice to see your slides on the site / should generate some good discussion.

I know you laid out some interesting facts and data - wonder why company reps were a bit sour?

Too much info to the masses????

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Permalink Reply by Mister Sunday on May 18, 2022 at 1:25

I am curious as well!

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Permalink Reply by Skip Peel - Mineral Consultant on May 18, 2022 at 1:29

The kind of information provided informs mineral owners and can make them more difficult to deal with when seeking a lease or attempting to buy their minerals at a discount to fair market value.  The industry has thrived on the fact that 99+% of private mineral owners are clueless as to how leasing and receiving compensation works or how to properly value their minerals.  I

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Permalink Reply by Mister Sunday on May 18, 2022 at 1:51

That's just like Rock Man and I were discussing offers for Mineral Acres/ Mineral interests/ Royalty Interests and I was saying considering how long the unit I'm in has been down, usually the offers are considerably lower than they have been.

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Permalink Reply by Skip Peel - Mineral Consultant on May 18, 2022 at 2:05

Offers are generally higher for all Haynesville/Bossier minerals regardless of their near term development situation.  Of course there must be considerable reserves left in the ground.  Since investors prioritize early return on investment, where new wells are on the way the offers are more aggressive.  There are however buyers who understand that buying good proven reserves where there are no indications of near term development involves less competition and potentially more cooperative mineral owners.  Its not just the current spike in natural gas prices.  It's that many investors see natural gas as a better longer term investment compared to oil.

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Permalink Reply by Mister Sunday on May 18, 2022 at 8:04

I think most of the (lowball) offers are from folks hoping to get it cheap because the royalty owners haven't seen a check in a while.

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Permalink Reply by Skip Peel - Mineral Consultant on May 18, 2022 at 8:45

That happens.  Most mineral buyers that have provided me with a peak behind their deal perimeters try to flip their acquisitions for a 25% markup.  Occasionally some will be adamant that they only buy for their own portfolio and don't flip. Of those who have made such claims, I have found a good many with mineral deeds to other investors that are recorded in the public record.

Whenever I get a contact from a new buyer, I perform a search of the secretary of state's database to see their incorporation/registration form.  If a principal listed there has a home address, I google it.  Most of the time I find they live in some pretty expensive looking homes.  If you were to google my home address, you would find a 70 year old, 2 bedroom - one bath 1200 sq. foot home.  I could live in one of those McMansions but I'm not that materialistic.  I'm comfortable with what I have and I sleep just fine each night.  In a business informed by flexible ethics, everyone who participates has to decide where their comfort zone lies.

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Permalink Reply by Bill R on May 18, 2022 at 5:31

Skip - We really appreciate your sharing all of this with us... helps those of us lacking in the understanding of everything Shale.

Good group of People here sharing some great insight and knowledge here! 

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Permalink Reply by Skip Peel - Mineral Consultant on May 18, 2022 at 7:22

Thanks, Bill. When I get caught up I'll start a discussion that mirrors the part of my presentation dealing with re-fracs.  Although it is based on Louisiana Haynesville data, I think it applies across the fairway.

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