/biz/ - Business & Finance

>>57165445
Lmfao you should be getting at least 1200$ per acre per month for the duration of the contract. It’s not an oil boom time when people were getting offers of 4-5k an acre.
I was in Pittsburgh during the 2013-2015 surge and people were making so much fucking money just over in WV from that. But you need to ask for expected and measured output and data regarding that 16% royalty value before you accept a dime. Because they might be trying to lowball you for future renewal of the contract right before an expected increase in production.
It sounds like they’re not even going to do anything but reserve the rights from you and hold because that 400$ is so low

>>57165481
Just to add, it could be some shady shit too where a company is trying to build a portfolio of held land value to try selling to a larger company for a package deal where they’d retain some royalty over top of you too.

>>57165481
Good to know. But question for clarity, what do you mean by, “It sounds like they’re not even going to do anything but reserve the rights from you and hold”? There is no current leaseholder. Sorry, completely new to this.

>>57165445
You can short cut this.
Ask them for $10m

If they agree, don't sign. You now know it's worth a lot, and then it's worth investigating more thoroughly. Let their greed work for you.

If they act outraged at your counter offer and ask why, you just tell them "you know why" and act mysterious.

>>57165445
20% minimum but you can hold out for 25%. A lot of operators will be more enthusiastic at 20% so you may get more activity. Hire the best O&G lawyer you can, completely worthwhile imo. You will get lump sum offers to buy you out completely with platitudes like "You never know, fossil fuel prices may just go to zero. maybe you should take the money now." Those are jews, don't ever sell out.

>>57165521
Some companies will purchase the mineral rights to your property for some duration just to hold it because their development may or may not b extended into your land. They might also be trying to jump the gun to reserve the rights before they finalize their downhole measurements and want to have it reserved before another company comes in, then eat the loss if it’s not fruitful

>>57165566
Understood, thanks. This company offered $800 to buy it out completely, which is seeming like highway robbery the more I learn. Have a family member who is a lawyer that specializes in this field so I will likely be going with him, and if thinks get compelling I’ll be paying him. My biggest concern is that these mineral rights are decades old, and the land may perhaps be barren.

>>57165566
Gotcha, thanks. As said above, these rights are decades old so there’s a possibility that everything’s been extracted. But I have no idea.

>>57165664
Oil field developments have to be declared publicly because of capping and decommissioning wells. Check into that to see where the well pads are located

Sounds weird. I wouldn't sell the rights at all. There will be more improvements in well drilling and you might be sitting on a million bucks in helium or something in 10 years. if there are any plans for gas wells in the area, the landmen will track you down and offer you a lease. I only own a few acres and get royalties from one well, but it more than covers my gas bill. Best of luck and don't ever sell your mineral rights.

>>57165445
bump for interesting thread

>>57165445
This but add some diversification and crypto in there. Maybe put some viralx and sol in your portfolio since those two are the next big shots of 2024

>>57165830
Good to know. Certainly not selling. The county is one of the top 5 gas producing counties in WV. Seems like an atrocious low ball. This side of finance is new to me, but it sounds like I’m going to have to get cozy with a lawyer.

>>57165957
Bro the mineral rights are sold in 5 year contracts, youd never sell complete rights

>>57166042
Thanks, I wasn’t planning on it but the company did offer to buy them outright for a whopping $800.