Replies to This Discussion

Permalink Reply by kittycatmama on May 18, 2011 at 0:29

Jay, I am glad you started this topic. We have interests to sell in south Caddo. It is hard to know where to start--who is a legitimate broker and who is not. We were negotiating with a broker. Thought we had a deal in place and then offer dropped by $1000. Needless to say, we backed off that deal quickly

• ▶ Reply

Permalink Reply by Henry on May 18, 2011 at 1:14

I think Skip can do this.  He certainly would know the prices and terms for recent transactions.

• ▶ Reply

Permalink Reply by BirdDawg, plain ole' idiot on May 18, 2011 at 15:31

Henry,

Yes, I think Skip would be a good person to talk to. And perhaps he could help them with their transactions.

• ▶ Reply

Permalink Reply by kittycatmama on May 18, 2011 at 18:15

I think that is a great idea

• ▶ Reply

Permalink Reply by Benn Bundy on May 18, 2011 at 4:22

I would be interested to know as well.  I have a client whose ranch I am selling, and she is reserving minerals.  But, an offer I'm working on might involve her letting a "few" percentage points of mineral interest go with the surface to motivate the buyer.  If we get higher than a "few," then we're past the pot-sweetener value and into an area out of my expertise.

• ▶ Reply

Permalink Reply by Henry on May 18, 2011 at 23:12

While we are on this topic of selling mineral rights....  Would anyone be willing to tell me what prices they are hearing for sales of mineral rights?  This site was very useful back in 2008 for letting people know what companies were paying for leases.  Maybe we can help others by letting people know what investors are now paying for mineral rights.   I think many people would be interested in seeing what various offers are being made and/or accepted.

• ▶ Reply

Permalink Reply by Horseman on May 19, 2011 at 0:17

Henry,

I know a landowner who is in Section 32 Township 19 Range 9w on the Bienville Webster Line that is trying to sell his mineral rights for 11,000 per acre.  I don't know if this is the going rate or not.  Petrohawk has let most of the leases expire in this section.  Petrohawk wants to lease at 500 an acre with a 25% royalty.  They paid 5000 back in 2008 to lease. On one of Petrohawks drilling maps they are scheduled to drill a well in this section in the 4th quarter of 2011.  I don't know if this helps or not.

I have not heard of any more sales of mineral rights or offers to sell.

• ▶ Reply

Permalink Reply by Horseman on May 19, 2011 at 0:51

Sorry for the typo I meant township 17n.

 

• ▶ Reply

Permalink Reply by Spring Branch,mineral owner on May 24, 2011 at 1:45

$11,000 an acre is a pipedream unless gas goes to about $10.00, IMHO.

• ▶ Reply

Permalink Reply by Susie Brown on May 19, 2011 at 3:17

GREAT idea Henry. We were offered $4000 a ac. for small portion in south Caddo (several rural lots made up a little over an ac). Several sections involved with one section with great producing well. We turned it down

• ▶ Reply

Permalink Reply by Zydeco on May 19, 2011 at 6:02

YES  on contacting Mr. Skip Peel, I have been extremely satisfied with his work ethics and vast   knowledge.  He is honest and straight forward. Should anyone wish a reference , back email me on the GHS site.  Good idea to contact him. He KNOWS.  As most of ya'll will agree , the O & G industry etc., is a very complicated subject (s)  and sadly a lot of people are not honest- Mr. Peel is honest.   He has the gift to explain complex issues  in terms that are understandable with whom he is working.  I am very impressed with his services.  THANK YOU  GHS site  !!!!!  To all the questions and contributors.  Just keep learning.    (no I can not spell well )

• ▶ Reply

Permalink Reply by Jeremey Hankins on May 20, 2011 at 5:45

As far as price goes, it really depends on the area. Most of the reputable mineral/royalty comapnies who have conducted business in the Haynesville Shale take their price cues from their principle investment firm. You will have the "Mom & Pop" company who will make an inflated offer because they only plan on closing two or three transactions in the play. The inflated offer made by them can sometimes also be deflated when it never closes. I can tell you with natural gas prices at the current rate and the recent decreases in rig counts, prices have subsided.  

 

In DeSoto Parish, if the Lessor had a 1/4 royalty, he or she could expect an offer ranging from $4,500 an acre to $8,000 an acre, depending on the location. It's like the real estate market, it's all about the location. For landowners with less than a 1/4 royalty the offer will reduce proportionately.

 

I advise landowners to only sell the royalty and retain the mineral rights (unless their is already production from a HA well. In that case selling mineral rights will provide the greater tax advantage). In addition, I think it's wise not to sell all the minerals or royalty, keep at least 10% - 25%. Most owners choose to sell half and keep half, that way their risk is balanced. They made a profit by selling 50% and have the other 50% for future potential.

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page