Residential mineral rights

T

Texas Horn fan

25+ Posts
So I came home today to find a notice from a landman saying that a natural gas company will be drilling in my neighbor hood soon and they would like to speak to me regarding leasing my mineral rights. FYI, I am in North Texas. Anyone have any suggestions as to what I need look out for, ask, etc?

Any help is appreciated.
 
Are you in a subdivision or have a good bit of land? If you are in a subdivision, the rest of the neighbors received the same thing and most times the residents form together and get some kind of representation. Depending where in the Barnett you are the price per acre will vary. Making the neighborhood assumption, you will receive a small check.
 
I'm a landman in North Texas/Barnett Shale area. Which energy company/broker? How much bonus were they offering you? How much land do you have?
 
hookem115,

I sent you a pm. I've got some properties with offers for leases from different companies that I'd like to discuss with you.
 
It's a good business for you guys. Best of luck and start F'ing drilling so I can get some $.
wink.gif
 
55k per acre?!? Was this in a residential area? I've only heard of 15-16k per acre so far in my limited interaction with the landmen.

Where exactly are you located?
 
Texas Horn Fan,

Who is the flyer from? It may be from my company, Prime Resources, I am one of the owners. I can answer questions as well.

And $55,000/acre for mineral rights is nuckin' futs. I'm buying them for a company at $15,000 to $25,000 an acre, and see no possible way they will ever make anything off their investment. They will be lucky just to break even.

Chief
 
don't settle for anything less than a quarter (1/4) royalty. Bonuses are nice, but the real money is in the royalty.
 
Been gone a little while, but Lone Star, that is fuckin' great that you got $55k an acre for mineral rights. Don't get me wrong, I'm glad you found someone crazy enough to pay that. We have made our living off of making sure the landowner gets a "fair shake." Congrats man.

And Lat22, the Barnett Shale is completely different than South Texas. Your money is in the bonus and not the royalty. It will take 5-8 years for the royalty payments to equal what you get in initial bonus money, and may never equal out. I have worked multiple plays and this is the stupidest/craziest **** I have seen since the early 1980s.

What is driving the Barnett, is that there are no dry holes, you hit 100% of the time (it is a blanket formation). Its all in the completion of the well. Thus every time you pick up significant acreage in the play and announce it, your stock goes up. That is where the money is being made in the Barnett Shale.

Lonestar you are my hero.

Chief
 
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