Sale of royalties - GoHaynesvilleShale.com2024-03-29T11:13:04Zhttps://gohaynesvilleshale.com/forum/topics/sale-of-royalties?xg_source=activity&feed=yes&xn_auth=noI’m in a similar predicament…tag:gohaynesvilleshale.com,2020-10-08:2117179:Comment:39342092020-10-08T02:45:10.975ZRenee Brownhttps://gohaynesvilleshale.com/profile/ReneeBrown
I’m in a similar predicament but the stakes are slightly higher. Currently receiving monthly residuals on several wells. Nothing over about 5k a month. Now the offers are flowing in via phone and mail. One land man who originally offered 250k, then offered 300k and now 400k to purchase my mineral rights. Certainly something is brewing for them to make such a fuss when I’m only making 5k at the peak of oil production for several wells?
I’m in a similar predicament but the stakes are slightly higher. Currently receiving monthly residuals on several wells. Nothing over about 5k a month. Now the offers are flowing in via phone and mail. One land man who originally offered 250k, then offered 300k and now 400k to purchase my mineral rights. Certainly something is brewing for them to make such a fuss when I’m only making 5k at the peak of oil production for several wells? OLDDOG2020, Thanks for the re…tag:gohaynesvilleshale.com,2020-10-07:2117179:Comment:39340742020-10-07T21:01:32.729ZBobi Carr ("parker")https://gohaynesvilleshale.com/profile/Bobi_Carr
<p>OLDDOG2020, Thanks for the reply. It is always good to have a complete picture. Especially since Steve P's family are contemplating the ins and outs of a Mineral Sale.</p>
<p>OLDDOG2020, Thanks for the reply. It is always good to have a complete picture. Especially since Steve P's family are contemplating the ins and outs of a Mineral Sale.</p> Came online January 2019 so I…tag:gohaynesvilleshale.com,2020-10-06:2117179:Comment:39330522020-10-06T16:38:24.434ZOLDDOG2020https://gohaynesvilleshale.com/profile/WadeBritt
<p>Came online January 2019 so I saw some good prices or at least better than 2020.</p>
<p>Came online January 2019 so I saw some good prices or at least better than 2020.</p> OLDDOG2020, I'm curious, when…tag:gohaynesvilleshale.com,2020-10-06:2117179:Comment:39325572020-10-06T00:58:51.502ZBobi Carr ("parker")https://gohaynesvilleshale.com/profile/Bobi_Carr
<p>OLDDOG2020, I'm curious, when were your 4 CUL''s produced? Were gas prices in the range that they are presently at?</p>
<p>OLDDOG2020, I'm curious, when were your 4 CUL''s produced? Were gas prices in the range that they are presently at?</p> You're welcome, Bill. I have…tag:gohaynesvilleshale.com,2020-09-25:2117179:Comment:39256612020-09-25T22:09:56.303ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>You're welcome, Bill. I have run across sellers with many good and rational reasons for selling but at this time a sale that just puts the funds into a money market or savings account at lousy interest rates isn't worth it. If there is a good use for the money, sell all or just the portion needed to accomplish the goal. If not, sit tight. As always the details matter and because we focus on Haynesville/Bossier E&P, the outlook for natural gas is better than for oil. There is a…</p>
<p>You're welcome, Bill. I have run across sellers with many good and rational reasons for selling but at this time a sale that just puts the funds into a money market or savings account at lousy interest rates isn't worth it. If there is a good use for the money, sell all or just the portion needed to accomplish the goal. If not, sit tight. As always the details matter and because we focus on Haynesville/Bossier E&P, the outlook for natural gas is better than for oil. There is a caveat to that statement. The next 2 to 3 years will provide a much better position from which to project natural gas usage. Whether oil or gas, no mineral owner wants to be stuck with stranded reserves.</p>
<p></p> Thank you Skip, you stated wh…tag:gohaynesvilleshale.com,2020-09-25:2117179:Comment:39255172020-09-25T17:59:34.968ZBill Rhttps://gohaynesvilleshale.com/profile/BillR
<p>Thank you Skip, you stated what I was saying in a far more eloquent manner... of the four proposal offers that I received, each of them has only one existing Well if anywhere from four to eight planned or projected per Pad... to myself, it is well worth the risk of maintaining possession of my Holdings vs. selling to Speculators, since they are all from inheritance and nothing that I have really earned, nor invested in. Really wish I understood more about the O&G Industry, but I am…</p>
<p>Thank you Skip, you stated what I was saying in a far more eloquent manner... of the four proposal offers that I received, each of them has only one existing Well if anywhere from four to eight planned or projected per Pad... to myself, it is well worth the risk of maintaining possession of my Holdings vs. selling to Speculators, since they are all from inheritance and nothing that I have really earned, nor invested in. Really wish I understood more about the O&G Industry, but I am learning and that is primarily from the people like you on here. </p> Buyers aren't attempting to c…tag:gohaynesvilleshale.com,2020-09-23:2117179:Comment:39245312020-09-23T19:21:28.707ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Buyers aren't attempting to calculate the potential/probable life time production volume/gross price for a mineral tract. State regulations will set the limit on the maximum number of wells a unit may contain but right now operators are choosing to driller a number less than the maximum (high intensity fracks). Buyers are only looking at a return on investment model for the wells that they can determine as highly likely to be drilled in the near future. The greater the number of wells,…</p>
<p>Buyers aren't attempting to calculate the potential/probable life time production volume/gross price for a mineral tract. State regulations will set the limit on the maximum number of wells a unit may contain but right now operators are choosing to driller a number less than the maximum (high intensity fracks). Buyers are only looking at a return on investment model for the wells that they can determine as highly likely to be drilled in the near future. The greater the number of wells, the quicker the return of the original investment, the better the offer given a seller that wishes to negotiate as opposed to accepting an "opening offer". Of course if the wells deemed likely to be drilled in the near future will complete all the unit acreage development, there is no upside for additional wells. Lots of moving parts but no offer is based on attempting to calculate the full life reservoir development and then offer say 50%. The risk of doing so would be high. The caveat is a risk factor based on the potential that some percentage of the recoverable reserves may be "stranded". There is risk involved on both sides of the equation.</p>
<p></p> Yup... seems the the 'Dogs ar…tag:gohaynesvilleshale.com,2020-09-23:2117179:Comment:39244542020-09-23T19:09:54.155ZBill Rhttps://gohaynesvilleshale.com/profile/BillR
<p>Yup... seems the the 'Dogs are baying at the Moon' right now with request to purchase some or all of our Mineral acreage out there... I received four proposals this last week for our existing producing Wells, but the hidden sector of their bid is that they also get any additional Wells that might be drilled on that acreage.... Seems to me that if they're that willing to hand out cash right now, they most likely know that something big is out there in the wind and they are just looking for…</p>
<p>Yup... seems the the 'Dogs are baying at the Moon' right now with request to purchase some or all of our Mineral acreage out there... I received four proposals this last week for our existing producing Wells, but the hidden sector of their bid is that they also get any additional Wells that might be drilled on that acreage.... Seems to me that if they're that willing to hand out cash right now, they most likely know that something big is out there in the wind and they are just looking for suckers to panic and sell right now for quick cash! </p> You're welcome, Steve. If a…tag:gohaynesvilleshale.com,2020-09-11:2117179:Comment:39231192020-09-11T21:56:31.747ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>You're welcome, Steve. If a mineral owner is without any pressing need for cash, there is little reason is consider a sale. At this point a sale of royalty that is for the life of the lease isn't much different than selling the mineral right. The chance that there is any additional economic unconventional formations or intervals underlying the Haynesville in NW LA and E TX is slim and none. By the time the Haynesville is fully developed and nearing depletion, it is highly likely that we…</p>
<p>You're welcome, Steve. If a mineral owner is without any pressing need for cash, there is little reason is consider a sale. At this point a sale of royalty that is for the life of the lease isn't much different than selling the mineral right. The chance that there is any additional economic unconventional formations or intervals underlying the Haynesville in NW LA and E TX is slim and none. By the time the Haynesville is fully developed and nearing depletion, it is highly likely that we will be at the end of onshore and shallow water oil and gas production in Louisiana. Louisiana however will continue to see production in federal GOM waters for another decade or so after that. Trying to get a greater share of that federal royalty revenue will be a tough sell in Congress.</p>
<p></p> Skip: thanks. Not having mu…tag:gohaynesvilleshale.com,2020-09-11:2117179:Comment:39231132020-09-11T21:16:00.563ZSteve Phttps://gohaynesvilleshale.com/profile/StevePorter
<p>Skip: thanks. Not having much tax knowledge, I hadn't thought about it being a capital gain, so, if properly structured, that could make the tax impact more neutral since the earned royalties would be taxed primarily as regular income. I didn't look at the proposed sales document, but was told that the sale was for long as the lease continues to produce, Plus 5 years thereafter.</p>
<p>Relevant family members seem to disinclined to sale any of the royalties until such time as there is a…</p>
<p>Skip: thanks. Not having much tax knowledge, I hadn't thought about it being a capital gain, so, if properly structured, that could make the tax impact more neutral since the earned royalties would be taxed primarily as regular income. I didn't look at the proposed sales document, but was told that the sale was for long as the lease continues to produce, Plus 5 years thereafter.</p>
<p>Relevant family members seem to disinclined to sale any of the royalties until such time as there is a need for cash.</p>
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