Thanks for all of the info, I'm not going to sell right now. With the offer being so high and me knowing the history of the current wells, the offer was intriguing. Finding out about the new permits makes the offer understandable now.

Another thing thing that made me think about it was the dilution of percentages as these minerals get passed down, it just becomes more of a mess. But I guess that shouldn't really matter if you're the one getting a check. I have another one where I get $0.11/yr.

txaggieacct85 said:

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GarlandAg2012 said:

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EnglishElhew07 said:

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I don't know that an appraisal from an engineering firm will really get you that far. I also think that a lawyer will protect you as far as making sure the paperwork matches what you believe are the terms of the transaction. But most lawyers have no idea as to what the "market value" of Oil and Gas properties is, they might tell you they know but it is not their area of expertise.

Can you post the location of the acreage? I am happy to look on DrillingInfo to see if there are any new permits etc on the acreage. Short of new activity I am sure there are people on this board that will be familiar with the area and could tell you more about what is happening.

Why do you believe that the offer is 3.5x the value? I am curious as to the logic here.

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There are plenty of engineering firms whose core business is advising A&D decisions, so I definitely think the right firm can help OP understand the value, but I'm not sure if it would be worth it. Really depends on the size of the position.

If the offer is way higher than expected I would think there are permits or something, or the buyer has some inside info. Location information would be very helpful.

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If there is successful drilling activity in the area, I wouldn't sell mineral rights.

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If Daniel Day Lewis made the offer, you might reconsider.

He's talking about the decrease in ownership through inheritance. The smallest ownerships continue to get broken up into even smaller chunks as it's passed from generation to generation.

Interests almost become so small they're more of a nuisance for mineral owners, and especially operators that have to account to them.

Got a Production Sharing Agreement today. Confirms the info on the new wells mentioned above. Can anyone recommend a Oil & Gas attorney to review the PSA?

He meant a purchase and sale agreement, not a production sharing agreement.

I'm board certified in oil and gas law, happy to help if you'll DM me.

Alpine is talking Production Sharing Agreement. Sounds like operator is preparing to drill an allocation well, but trying to get mineral owners signed up under PSAs to agree to allocation formula.

txaggie_08 said:

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Alpine is talking Production Sharing Agreement. Sounds like operator is preparing to drill an allocation well, but trying to get mineral owners signed up under PSAs to agree to allocation formula.

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100% this. Talk to your attorney. Get it ironed out. Probably want to have any statements/DO paperwork with your interest handy. You'll get a % based on the length of producing lateral that traverses the tract you own an interest in.

This is probably a good thing for a boost of production for you. Congrats!

That previous group is probably just chasing permits trying to get some interest.

Huh that's interesting. I guess all the Production Sharing Agreements I've had mineral owners sign on behalf operators drilling allocation wells were a figment of my imagination. Good to know.

My bad. Horizontal wells. Directional drilling

Txaggieacct always knows more than everyone else. The MF Barnes trait.