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.
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Replies to This Discussion
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landownerPermalink Reply by Bobi Carr ("parker") on -
HBP,
Yes the offer was for $5,250 per net royalty acre, so at a 25% royalty rate that would be an offer of $10,500 per mineral acre. And as you state much higher than most of the unsolicited offers.
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landownerPermalink Reply by Bobi Carr ("parker") on -
I would imagine it depends on whether you sell mineral rights or royalty interest.
I'm still trying to get a grasp on understanding all of this.
The royalty acres just seem like an annoying nonsensical designation. Why not just say "we pay "x for 20% and y for 25%, etc.". I guess if they did that we might understand.
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Permalink Reply by Snake Stewart on
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Hey Parker,
Its almost as bad as all those ammendments that keep getting voted on that we have no real clue as to what they really mean.Its like when someone already has an advantage over you yet they still decide to cheat just to make doubley sure they win the game.
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landownerPermalink Reply by Spring Branch,mineral owner on -
I think non-producing royalty has a ten year max life in the State of Louisiana.
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Oil & Gas ProPermalink Reply by The_Baron on -
Consider this, the initial offer amy be just that, a starting point for further negotiations.
Also, you can sell just a portion of your minerals for cash now. You could sell 1/4 of your minerals, get a garunteed big lump sum now, and still have posible royalties later. May even get your minerals back one day.
If you do sell Parker, make sure you keep all of your surface rights.
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landownerPermalink Reply by Bobi Carr ("parker") on -
Baron,
Just curious if you know anything about MPH Production in Tyler, Texas.
The main thing that I am trying to find out is if they are a subsidiary of Encana, like MC Minerals is a subsidiary of Chesapeake.
I found it strange to get such a high unsolicited offer for property that has NEVER been drilled.
MC Minerals tried to acquire minerals in area where Chesapeake was to begin drilling.
Encana has applied for Unitization in my area, soooooooo it occurred to me it may be the same thing.
JUST CURIOUS IF ANYONE KNOWS ANYTHING ABOUT MPH PRODUCTION.
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Oil & Gas ProPermalink Reply by The_Baron on -
I do not know of MPH production.
It is possible Parker that they might be associated with encana, but they may just be following tha unit orders. Maybe they saw the unit application with your name on the plat. I'm just speculating of course. In any case you need to decide what is best for you.
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Oil & Gas ProPermalink Reply by The_Baron on -
As to the high amount, its possible they have made other lower offers to other landowners with no response...and raised their antes
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landownerPermalink Reply by Bobi Carr ("parker") on -
Baron,
All of this is like watching a sport that you have never seen or heard of before. To a certain extent I'm just trying to pick up on the plays that are being made. I'm trying to get a handle on the whole game. (And I thought hockey was fast moving).
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Oil & Gas ProPermalink Reply by The_Baron on -
Keep in mind that the rules are always changing in this sport.
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landownerPermalink Reply by Bobi Carr ("parker") on -
I see that. The players change frequently also.
It seems similar to hockey thought in that I hear a lot of people hollering "aw shucks".
That is what they are hollering isn't it?
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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on -
Parker, MPH Production Co. appears to be their own entity. Founded 1n 1988 by Robert Davis, I think.
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