Contacted by royalty acquisition company

They’re going to kidnap and sell you into sex slavery.

I did a lease to own through them for a property I was selling.

Totally going to come out ahead on this.

There are probably very few instances in the entire human history when selling mineral rights turned out to be a good idea.

100% legit, what's the name of this one called, doesn't start with an M does it? I called for one for 3 weeks as you can make 10% cut as a sales agent. It f*cking sucked, so many people just tell you to piss off. Maybe 1 in 10,000 calls works and it was a big step down from going to the most respected position with an operator, a PETE, to sales agent.

Their motive is to make money. Where's your land? In popular basin? Haynesville or Midland? or less popular like Tuscaloosa shale? If it's Tuscaloosa or lesser known basin, I might sell because an operator may never actually drill and you won't get any royalties besides the leasing signing bonus (if any) you got.

If it's a popular basin, ask the royalty company what strip price they used in their model to value your acreage, the higher the better.

If you want, tell me what they offered you per acre and the area and whether it's producing or undrilled. I do this for a living from a PETE side valuing acreage/reservoir engineering and can tell you if it's a good deal or not.

Maven, read my comment above.

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Yeah, they want to purchase them all out right. I asked if they were drilling and he said they don’t drill they just purchase mineral rights.

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This is just someone who tries to scoop up rights and then tries to get an E&P company to come in and develop or just sits back and hopes they eventually will. They’re basically predatory land men. Unless you’re in a bind to pay the property taxes and about to lose the land I’d tell them to get lost.

If it's undrilled, I wouldn't sell unless these values per acre: Haynesville you can fit 5 wells per section. That's 640/5 or 128 acre spacing wells. They can make 10 BCF per 1 mile lateral (in good parts, this is key) if it's near De Soto, Red River, South Caddo Parish. That's .078 BCF per acre. You get 22.5% royalty usually. .0175 BCF of gas belongs to each acre of royalties. That's 17.5 MMCF. At $3/mcf, you can $51,000 per acre. This is an optimistic scenario. Really, this would be like $3.25/mcf Henry Hub as there are a few cents taken out for marketing gas as royalty owners. Operating expenses however are not burden on royalty owners. Other key thing is if this is undrilled acreage or drilled. The less drained or nearby wells in the section, the more it's worth

Key thing here is this is also if everything goes right, it won't always. Sometimes acreage never gets drilled, wellbore collapses during drilling, parent well nearby already drained the rock, a lump sum today is always better than an exact same amount spread out over a few years, etc. I wouldn't sell below $25,000 an acre for undrilled acreage in the Haynesville

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There are probably very few instances in the entire human history when selling mineral rights turned out to be a good idea.

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I know a lady who sold her mineral rights to a natural gas exploration company. She had a couple of hundred acres about 7 miles east of Ponchatoula. She chose that instead of sharing in the profits.

They came in and drilled a well, which was a duster. Then they cleaned it all up and returned the land to its natural state and split. I’d say selling the mineral rights turned out great for Carolyn.

Yes this would be a great example if it's in a shite area like 7 miles E of Ponchatoula where there really isn't any notable basin besides a weaker Wilcox formation, then it's worth it to sell. Notable basins it likely isn't.

For some reason I get the feeling that you are a Louisiana plaintiff attorney.