Replies to This Discussion

Permalink Reply by Rock Man on August 17, 2020 at 9:48

Selling minerals is a personal situation. If you really need the $$$ and the offer is decent, you should do it. But in most cases, holding onto your minerals is a good thing to do.

Every situation is unique - no one general answer. One has to weigh a lot of issues before making a decision to sell or not sell. One of those issues is what is the industry activity in the area in question.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on August 17, 2020 at 13:04

An offer to purchase minerals should be a reason to research the public record for near term development possibilities.  Is there an application for new or additional unit wells?  Might there be some very recent permits for one or more new wells that include your minerals?  Most mineral buyers are looking for early return on their investment so they scour the records daily trying to get a feel for what will be drilled next.  They depend on the mineral owners being less informed than they are.  Do your homework.  If you can't, then post the details and one or more members will give you their opinion.

Is it ever a good idea to sell minerals?  The answer, as far as I am concerned, is a qualified yes.  Yes, if you you have a need or a compelling opportunity that cash now can satisfy.  Yes, it you are timing your sale to the "top of the market".  And if you answer yes to the need or opportunity, what percentage of the whole would you need to sell to cover that.  One eighth?  One quarter?  One half, etc.?  As always the details matter.  "Around Ringgold" is not specific enough for me or anyone else to perform research that would provide you with an informed opinion.  The location by section-township-range is the only way to give an informed answer.

• ▶ Reply

Permalink Reply by Farmer on August 18, 2020 at 10:58

Section 12, 15 North, Range 9 West

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on August 18, 2020 at 11:13

Interesting.  Section 12 is an Aethon operated unit and there are two Haynesville wells that are drilling now.  Ensight may be trying to get a Working Interest in that unit because they would not be able to operate (drill wells).  If you are unleased than you may have a very small acreage interest and Aethon may have overlooked you.  Did you ever get a lease offer from Aethon?  If not, I would think it worth your time to see if Aethon might make you a somewhat better offer.

• ▶ Reply

Permalink Reply by Farmer on August 18, 2020 at 14:20

We have existing wells with Aethon. This is a company out of Dallas who is trying to purchase our mineral rights in Section 1 and 12. We have existing wells in both. Other companies have made offers for 12 only.  We know they are drilling in 12. We kind of feel they are being pushy, which makes us want to ride it out and just wait on royalties.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on August 18, 2020 at 14:24

Pushy mineral buyers should be ignored.  They are bottom feeders.  I got this discussion crossed with the one on Ensight. Good luck on your new wells.

• ▶ Reply

Permalink Reply by Farmer on August 18, 2020 at 14:43

Lol, thanks!

• ▶ Reply