Replies to This Discussion

Permalink Reply by Richard Lacouture on August 3, 2010 at 11:32

There is a well being drilled in Section 24 T12N R9W. I recently received a similar offer and my initial reaction was 'no way'. The potential for income seems to far outweigh the amount of money that I would receive for 1/2 the mineral rights. I would love to hear from someone who knows more than I do about their reaction to such an offer.

Permalink Reply by PN on August 3, 2010 at 11:46

Richard,

Can you give me a little more insight as to what you see as potential income? I'm trying to weigh needing the money now and taking some money knowing I'll lose some over the long run as oppoed to losing a lot over the long haul.

if you prefer you can email me. I sent a friend request

Permalink Reply by William Barbee on August 3, 2010 at 13:36

Just my opinion. Unless you are in a heck of a bind, keep your royalties.

Permalink Reply by redrivergal on August 4, 2010 at 4:48

I agree with William. Unless you're in a financial bind and need the money now, keep your royalties.

Permalink Reply by oklahoma grl on August 4, 2010 at 7:01

I agree too! obviously if they have upped their offer, then they know something you don't. Plus even tho all of this drilling is time consuming, the haynesville is huge and in the end it will pay to own land there. I say keep your royalties.

Permalink Reply by PN on August 4, 2010 at 7:05

Well honestly bind is a very good word. Plus there's the bird in the hand thing. This thing might never pay off. I figure itcould be 2 or 3 yearsb4 it pays.

The guy said the reason he upped the offer is because he's getting ready to move his efforts to another section so he upped the offer to see what he could get b4 he moved on. does this seem likely?

Permalink Reply by Todd D. on August 4, 2010 at 7:39

It's true, you may not know what wells will hit and what won't.

In fact, you may earn more $$ the first year getting your full royalty as opposed to selling it now.

It's best to talk to someone who has a good financial handle on the location and size of the wells that are coming in and what the value of your royalties would be over time.

This site is great for information and the SONRIS site can tell you what wells are in your section or in the sections around you and how big they are.

Permalink Reply by PN on August 4, 2010 at 7:46

do you know anyone such as you describe? The way I figure it I have 4 acres - 75% of that - 3 acres- is royalty going to the leasing company. In effect that leaves me with one acre royalty. They want half of that and I'd still get half. So it comes to 16k for 1/2 acre royalty.

Permalink Reply by Todd D. on August 4, 2010 at 8:09

There is someone on this site named Les B. He usually has good information.

From what I've seen on SONRIS, permitted wells are all over the place in 12N-09W...sections 2, 3, 4, 5, 6, 8, 9, 10, 11, 13, 14, 15, 16, 24, 28, 33, 34.

The well in Section 4 is active and estimated at 23884 MCF. That's a big well.

Permalink Reply by Two Dogs, Pirate on August 4, 2010 at 10:17

Some have estimated something like $86,000 per acre at 1/4 royalty. So that would bring in to you $344,000. No one knows what the price of NG will be tomorrow so these figures could change.