Unsolicited offer to purchase mineral rights.
I just received an offer from MPH Production Company in Tyler, Texas to purchase Mineral rights for $5,250 PER NET MINERAL ACRE. According to an old thread "royalty acre" is 100% ownership of an acre leased at 1/8th. Assuming this as correct then that would amount to $10,500 per acre leased at 1/4. This is for non-producing HS acreage. Has anyone else received this offer? I'm not interested at that price, but it was higher than other unsolicited offers. It also made it clear that it was an offer to buy and not lease. I could only find one transaction by them in Bossier from a few years ago. Just wondering if they are to Encana what MC Minerals are to Chesapeake.
Views: 157
Replies to This Discussion
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Permalink Reply by Checkmateking on
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$5,250 PER NET MINERAL ACRE
Pretty weak.
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Permalink Reply by Bobi Carr ("parker") on
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All of the unsolicited offers are pretty weak.
This one was just a little better than previous for producing property. I see another post stating that Pinnacle offered $1600 for 10% in Red River. I find it interesting that so many offers are appearing for mineral sales considering that the economy is so bad right now. This is from a company that I have not received offers from in the past.
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Permalink Reply by Snake Stewart on
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Parker,
This is so important to the people that arent as aware as yourself. It would be fairly easy for someone to slip up and sign a deal selling their rights if they werent accutely aware of the situation. We hope that the masses are aware of these tactics but we cant ever believe that there isnt someone out there that needs a refresher from time to time.
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Permalink Reply by Spring Branch,mineral owner on
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Parker we need someone more expert than me @ this, but I think you just defined "royalty" acre as opposed to "mineral" acre. My impression of this unsolicited mineral acre offer you just received is that you are being offered $5,250 per acre for your minerals, and unless stated otherwise, the offer would apply whether your minerals were burdened by a lease or not. Actually they probably have a copy of the lease and know exactly what the royalty burden is. If you have a 1/4 royalty lease, I'd say they are trying to buy it on the cheap.
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Permalink Reply by Bobi Carr ("parker") on
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The offer was for $5250 per net royalty acre.
Sorry I corrected it above. Thanks Spring Branch.
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Permalink Reply by Bruce on
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I know I've read it somewhere but I can't remember. Can someone tell me what the per acre estimate is of gas is in the h-shale?
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Permalink Reply by Bobi Carr ("parker") on
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52 Bcf of gas per section
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Hey Parker,
I do believe that 52 Bcf is the current recoverable estimate isnt it ?
I believe that Uncle Floyd made that comment right about the time he said something about $30,000 being chump change for HS acreage. But what does he know huh ?
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Permalink Reply by Bobi Carr ("parker") on
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That figure probably doesn't take into account other zones.
Hopefully HS will just be the beginning.
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Amen to that!
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Permalink Reply by Spring Branch,mineral owner on
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Parker, Snake, I'm not a petroleum engineer, but I'm kinda wondering if wells in a section that IP at 28 mmcf/d (thousand thousand you know who) might at some time down the line cause the PE's to change their estimate of recoverable reserves to a higher number than 52 ???
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