Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on July 9, 2020 at 13:47

Depends on too many factors to give a "fits all" response.  Location, size in acres, prospective formation(s) and current activity in the area are some of the basic details that inform lease negotiations.  John, if you are hesitant to post the details you can send me a friend request and post a private comment on my personal page.  I would like to add that there is no real reason not to post sufficient details to get replies as others in your area may be negotiating or considering a lease now also.  Posting here should not put you at a disadvantage regarding a lease or a sale.

Read this.  Click on the text in blue.

FUNDAMENTALS OF LEASING AND SELLING MINERALS

By Skip Peel, Independent Landman

The following is intended to give mineral owners an idea of how minerals are valued and how they are commonly leased and sold. The comments are purposely general in nature as the subject is fairly complex, details regarding size and location of mineral ownership vary widely and those variations are critical to determining value. Anyone considering the sale of minerals should seek the professional assistance of a landman or attorney experienced in the leasing and sale of mineral interests and familiar with the  exploration and production history and current activity in the region where the minerals are located.

• INTRODUCTION

• UNCONVENTIONAL VS CONVENTIONAL RESERVOIRS

• LEASING

• NEED TO KNOW TERMINOLOGY AND VALUE METRICS

• OPTIONS IN STRUCTURING THE SALE OF MINERAL RIGHTS

• PROS AND CONS OF SELLING A MINERAL RIGHT VS SELLING A ROYALTY INTEREST

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Oil & Gas ProPermalink Reply by phoenix on July 10, 2020 at 0:02

Usually better to lease it first to collect lease bonus, consult attorney to get best terms,  Then entertain offers to sell

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