Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on December 27, 2008 at 6:57

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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Permalink Reply by Bobi Carr ("parker") on December 27, 2008 at 7:41

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 December 27, 2008 at 7:47

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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Permalink Reply by Spring Branch,mineral owner on December 27, 2008 at 8:04

I think non-producing royalty has a ten year max life in the State of Louisiana.

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Permalink Reply by The_Baron on December 27, 2008 at 7:05

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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Permalink Reply by Bobi Carr ("parker") on December 27, 2008 at 7:11

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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Permalink Reply by The_Baron on December 27, 2008 at 7:15

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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Permalink Reply by The_Baron on December 27, 2008 at 7:16

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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Permalink Reply by Bobi Carr ("parker") on December 27, 2008 at 7:19

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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Permalink Reply by The_Baron on December 27, 2008 at 7:26

Keep in mind that the rules are always changing in this sport.

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Permalink Reply by Bobi Carr ("parker") on December 27, 2008 at 7:33

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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Permalink Reply by Two Dogs, Pirate on December 27, 2008 at 10:02

Parker, MPH Production Co. appears to be their own entity. Founded 1n 1988 by Robert Davis, I think.

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