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Permalink Reply by Ann Gamble on February 27, 2009 at 10:28

I made a big mistake and sold part of my mineral rights. Was told the monthly royalty would be around $100.
When I received my first check the royalty payment was much higher. Now for the life of the well this company will get 12.5%. Don't do it.

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Permalink Reply by herefordsnshale on February 27, 2009 at 13:12

I see. I guess it makes sense because they know a well is going in. Not exactly a big risk on their part and not much advantage to the landowner.

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Permalink Reply by Margaret Wren on February 27, 2009 at 13:43

I had an offer from them last spring, the offer was huge, they wanted my undivided shares of only 6 acres( 4 are mine) I dont remember the exact offer and would have to find the paperwork(yes, I kept it) the amount before taxes etc would have totaled over $300,000. No, I did not take them up on that offer, if it is worth that to them it is worth much more to me!!

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Permalink Reply by Ian on February 28, 2009 at 5:08

Margaret,
If you were offered 300k plus for 4 acres, in my opinion, you made a mistake that many people make..... if "x" company offers me this much money for something, it HAS to be worth much more. That is not always the case. Here are some simple numbers , just food for thought.

4 acres times 1/4 royalty divided by 640 acre unit = .0015625 Assuming the gas in place is around 170-200 Bcf per section. And assuming recoverable gas is around 40Bcf per section (these are all numbers that are yet to be proven.... no one will know for sure til years down the road) Take your decimal .0015625 times 40Bcf times 4 dollar gas and you would get a total of 250k. And this would take YEARS to make all the wells and thats all assuming total recovery of the 40Bcf. I guess its human nature to feel that if so and so want to pay me "x" amount for something, it HAS to be worth much more. Sometimes thats not the case. Hopefully gas prices rise and you can maybe see 300k plus over the life of your minerals and royalties. Good luck.

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Permalink Reply by Margaret Wren on February 28, 2009 at 5:55

I leased in 1999. I had assistance from a friends father who was a former land lease attorney, there is a pugh clause for depth limitations of 50 ft below a certian depth, I am recieving 25% royalties (yes I got 25% royalties in 1999) on several wells and was force pooled for quite a few wells that were drilled deeper, all of which are in the cotton valley zone, and also recieve payment for that as well. I have been drawing monies for ten years. There are 5 more proposed wells in my section, considering what monies I have already drawn (half what I was offered), I will take my chances. My dad had a geoligist drill a core sample back in the 60's when he owned a much larger piece, which he sold off in his old age all but the 6 acres, we know what is there.

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Permalink Reply by Margaret Wren on February 27, 2009 at 13:46

I forgot to mention the property is in South Bossier Parish.

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Permalink Reply by buddy on March 2, 2009 at 8:26

that will be fore your intrest. forever

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