We have received offers to purchase mineral interests on unleased acreage in Caddo and Bienville Parishes. Are there actual parties purchasing such interests? Or, are those making such offers simply misinformed?
LOL! Some of both, Thomas. Yes, there are some few remaining spots in both parishes that are not leased but prospective for economic Haynesville Shale based on production in close proximity. There are also a number of mineral companies making offers that have very little knowledge of the Haynesville fairway and thus make offers in some pretty strange locations. Makes you wonder about their level of due diligence. Those same mineral companies from other states appear to have little understanding of the facts concerning the differences in Louisiana mineral code regulations and case law. What I want all GHS members to understand is that the work and research that goes into making an offer is very, very limited. This is standard operating procedure for most mineral buyers. In their business model, there is no reason to expend time and money beyond the minimum until they have a response from what looks to be an interested seller. At that point, they are willing to perform more research into what they may be buying. Mineral research and title research. In order to protect themselves from such companies, mineral owners should be as informed as possible and only sign leases or purchase and sale agreements that do not warrant title and are binding except for clear title. For anyone who has considered selling all or a portion of their mineral rights, this is an opportune time. Just do your homework. If possible get multiple offers. And be careful about companies that use the bait and switch approach. Throw out a big number and then attempt to walk it back once someone appears interested in selling. In these cases, seller beware.