cowboycorn
Hired Hand
schpellin and gramer natzee
Posts: 155
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Post by cowboycorn on Aug 10, 2011 21:22:57 GMT -5
Considering selling some mineral interests, offers are very attractive, and said company wants to issue 60 day sight draft, claiming they need the time to look into legals, ie., do I actually own the minerals I claim to be conveying to them, yadda yadda. Dad still has a bad taste in his mouth from back in the 70's on a sight draft for mineral lease issued to him. Company was drilling a well just north, wanting to tie up leases adjacent to it, issued 30 day sight drafts to several victims, well came in dry, they pulled the draft.
Have things changed and do I want to take a sight draft? We are thinking about selling our land, and opportunites appear best to divide minerals and surface, but I have one realtor that is promising pie in the sky prices if I give him a chance. Land has obviously not fallen from favor yet for investors.
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Post by 4430 on Aug 11, 2011 7:08:10 GMT -5
Considering selling some mineral interests, offers are very attractive, and said company wants to issue 60 day sight draft, claiming they need the time to look into legals, ie., do I actually own the minerals I claim to be conveying to them, yadda yadda. Dad still has a bad taste in his mouth from back in the 70's on a sight draft for mineral lease issued to him. Company was drilling a well just north, wanting to tie up leases adjacent to it, issued 30 day sight drafts to several victims, well came in dry, they pulled the draft. Have things changed and do I want to take a sight draft? We are thinking about selling our land, and opportunites appear best to divide minerals and surface, but I have one realtor that is promising pie in the sky prices if I give him a chance. Land has obviously not fallen from favor yet for investors. Cary I understand wanting to sell minerals and land separate however it's not fun to buy land then have the one's that own all the mineral rights lease to any Tom Dick and Harry promoter. Those that own land with no mineral rights know full well what I'm saying! At least let some mineral rights go with the land . I'm only posting these thoughts for consideration of the land buyer ! |
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Post by ses on Aug 11, 2011 7:31:08 GMT -5
I'd be more inclined to keep half the minerals if it was in an area that has good potential, maybe for ten years or something. It's not unheard of to gross way more income in a short period of time from one oil well that what the land is worth. They're hitting 300 to 900 bpd wells in west central Kansas right now. Having one eighth interest in that would make you a rich man in a little while.
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cowboycorn
Hired Hand
schpellin and gramer natzee
Posts: 155
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Post by cowboycorn on Aug 11, 2011 9:40:25 GMT -5
ses,
Those kinds of production figures are right here close to home too. But it ends somewhere ya know, and the division between 3W and 4W I.M. seems to be it. I straddle that line on either side. I'ts rolling the dice, and not all mineral owners will get a well, and just like marketing grains, will leave money on the table waiting to become the next Jed Clampett. I have been a gambler in farming most of my life, have "0" invested in the minerals, worthless for the last 50 years in this area, and am thinking about letting someone else take the risk in the minerals. It might happen and it might not, we are on that "ledge" here in our county where it's not a sure thing, and almost no interest just a few more miles to the east. At the kinds of $$$ they are offering, and my age, I can only spend so much before I'm worm dirt. I doubt I move to Bebbly Hills.
On one property, I gave the widder 50% for 20 years. In 13 years, we get that back, regardless of production or not. That will be my retainer on this place, and likely the quarter with the shed we want to keep to facilitate my custom business that I plan to keep for a while.
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