Replies to This Discussion

Permalink Reply by Randy on December 13, 2008 at 7:11

I believe the farm acreage that is currently leased will be held, unless it is found to be undesirable. Even with a rig shortage/slowdown. Of course that is my opinion.

Permalink Reply by boby on December 13, 2008 at 7:20

Your figures are probably on point Jim, but there is a doubt in every sellers mind to whether they will be giving up the chance at big money if their land is not HBP by then. My question is this doubt causing land costs to escalate. Are large tracts selling at all and at what cost?

Permalink Reply by Randy on December 13, 2008 at 7:39

When I've seen people selling property they have been asking a pretty enormous price and then if they accepted a lesser offer they would reserve the minerals. Basically, if you want the minerals you pay my asking price.

Permalink Reply by boby on December 13, 2008 at 7:42

What are these asking prices Randy? How much with minerals and how much without? Could anyone give us some numbers?

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 8:09

Or. The NW. LA. version of the Ruhr River

Permalink Reply by North LA on December 13, 2008 at 10:07

Here's an ethical question for you Skip. If you had the opportunity to buy land with minerals in the Haynesville shale sweet spot cheap from an uneducated land owner would you do it or would you make sure the land owner knew what they were doing first?

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 10:20

North LA. Good question. But I doubt there are any landowners in the sweet spot who are uneducated at this point. At least I hope not. Many threads have debated the business ethics of varied facets of the Play. If I found some land that I considered cheap in the sweet spot and decided to make an offer, I would make it clear that my offer included the minerals. As I am representing myself in this transaction, I would consider that sufficient expression of intent. It is not only the buyer who should beware but also the seller. And we are speaking of business. I hope no one expects that the party on the other side of the bargaining table would turn all their cards face up.

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 11:16

North LA. Now here's a hypothetical question for you. You are a landman representing a land owner. You are presenting an offer to an O&G company. You know that the landowner is asking X/acre but is willing to take Y/acre. Should you inform the O&G company that they can get the deal at Y. No need to answer. We all know the correct answer. My point is that this is business and no one should be expecting the other party to divulge any information not required by law. I would not make a business deal with anyone who I suspected was not mentally competent.

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 12:52

It's a hypothetical question, Jim. I have stated my ethical line. I'll let others provide their own hypothetical answers.

Permalink Reply by North LA on December 13, 2008 at 13:09

I guess I should have said moral rather than ethical since ethical could be a legal description. Basically could you live with yourself if you bought land/minerals (80+acres) from an old woman who had no idea her land could be worth millions of dollars.

Permalink Reply by The_Baron on December 13, 2008 at 15:19

Is charging an ORRI any different than the accident lawyers charging a percentage of the settlement? If someone can not afford an attourney, giving up potential future revenue may be their only choice. The bottom line is, each individual has to make their own decision on their personal circumstances.

Permalink Reply by North LA on December 13, 2008 at 17:49

The lawyer is charging a percentage for their service so the landowner will still have 22% of their royalties. If I were to buy land for $1500/acre with minerals included then I would potentially get millions while the old landowner got shafted. Some may say that's the reward for studying and knowing what you're doing but personally I would want the landowner to know what they were giving up before they did it and then if they were desperate for money and decided they still wanted to sell then so be it.

• ‹ Previous
• 1
• 2
• 3
• …
• 5
• Next ›
• Page