Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on February 25, 2009 at 14:38

Deb,

Before you think about selling minerals SO CHEAP, take a look at what the real value is. You could be collecting royalties from that property for the next 30 to 50 years.

MAIL BOX MONEY IS HARD TO BEAT!

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Permalink Reply by insomniacnla on February 25, 2009 at 16:08

I am in Stonewall and I also received the same offer of $8,000 from Permian Basin, so did friends in Frierson and Keithville. It is not for me though, I'll pass.

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Permalink Reply by Bobi Carr ("parker") on February 26, 2009 at 20:03

Jim,

Is this at $4.00 gas?

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Permalink Reply by herefordsnshale on February 27, 2009 at 3:52

If you have leased your minerals you don't have them to sell. If you leased at 25% royalties that is all you have, the gas company has the other 75%. I'm not familiar with this particular letter but have seen some similar to them. The $8,000 an acre applies to UNLEASED land. If you have leased the amount would be a lot less.

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Permalink Reply by Bobi Carr ("parker") on February 27, 2009 at 5:08

herefordsnshale,

The $8,000 an acre is for leased land. They are buying in areas that are already unitized and that they believe will go into production within the next year.

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Permalink Reply by George James on March 1, 2009 at 16:39

You are incorrect...you can sell your minerals if they are leased...sounds like you got some bad info.

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Permalink Reply by Bobi Carr ("parker") on March 1, 2009 at 16:51

George,

You can sell them if they are leased.

You can sell them if they are unleased.

McMinerals is buying in areas where Chesapeake is getting ready to drill. The right hand knows what the left hand is doing. That isn't too hard to figure out.

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Permalink Reply by Dion Warr, CPL on February 26, 2009 at 11:36

Deb:

Minerals, or royalty?

The distinction does mean a difference.

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Permalink Reply by insomniacnla on February 26, 2009 at 12:22

I don't mean to answer for Deb but I have seen my letter and the letters of 3 of other landowners in Frierson and in Keithville, and all are the same. And all had the incorrect s/t/r
My letter states:

"Permian Basin Acquisition Fund (PBAF)
Offer to purchase MI/RI
Operator: Palmer Petroleum
Sec. 8, Twn: 15N Rng: 13W
Baton Rouge Parish, Louisiana

PBAF respectfully offers $8,000 per net mineral acre for all of your unrestricted, perpetual, fully participating and un-severed, or recently severed, minerals and/or royalty interests in the lands described above. You may derive your exact offer by multiplying the number of net acres you own where indicated.

Our budgeted funding for this program is limited to the first $2,000,000.00 of written acceptances and concludes on Friday, March 13, 2009."

There is a lot more to the letter, how to contact the PBAF, Western Union Bank draft, etc.

It seems that the PBAF has cast a wide net and has sent the same or very similar letters to a large amount of landowners.

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Permalink Reply by Dion Warr, CPL on February 27, 2009 at 2:11

Insomniac:

The reason I ask: If the leases are getting ready to expire, bonus monies again. Sell your minerals, lose the executive rights. If you're planning on holding the line for say, $4K/ac., you just held your minerals and royalty rights out there for relatively little, like $2K per royalty acre (as with a lease royalty of 1/4, the lessor has two royalty acres per net mineral acre to sell)

If you were fortunate enough to sign a higher dollar lease with a two-year extension (say like $10K bonus, $10K for two-year extension) and you're still in your primary term (which most that signed in 2008 would still be), and the lessee pays the two-year kicker, guess what? It goes to PBAF, not you. You sold the minerals, PBAF is the successor interest to the lessor. Your money situation just went into reverse. Your $8K per acre just bought PBAF a $10K kicker.

The trash would be a good idea. But if for some reason you need the money, please, please, PLEASE seek reputable counsel (lawyer, landman, trusted advisor 'in the know') to find out what exactly they are wanting you to sell, BEFORE you sign papers.

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Permalink Reply by insomniacnla on February 26, 2009 at 14:42

Excellent suggestion. I'll trash it, and their pretty pamphlet, too.

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Permalink Reply by Checkmateking on February 27, 2009 at 1:48

I might lease em a quarter for 8 grand.

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