AboutJames H. McConnell, CPL Expertise READ CAREFULLY BEFORE ASKING ME A QUESTION
I will try to answer questions about oil & gas leases, minerals, royalties, and servitudes, if the questioner has provided a good description of the lands. I require a section, township and range for any land not it Texas. I require a survey name and an abstract number if the lands are in Texas. I will answer questions about offers to lease or purchase mineral interests only if all terms of the offer are in the question, including the term, the royalty and the amount offered. Failure to provide this information will result in the question being rejected.
I have answered more than 2300 questions on this site and get as many as fifty in one day. I do not have the time nor am I inclined to deal with detailed questions requiring an attorney. I am not a substitute for an attorney. If you do not write in a cognizant form, I will reject your question. If you have done real research and have a question I find interesting, I will answer it. If you haven't done any research on your own, I will not do it for you.
If you do not rate the first answer, do not send a follow up, because I will reject it. If my time means so little to you that you feel that you cannot take your time to rate an answer, I do not have time to answer another question.
Experience I have been a Professional Landman for more than thirty five years. I have drilled and operated oil & gas wells in Louisiana and Texas and an familiar with the rules and Regulations of the Texas Railroad Commission and the Louisiana Department of Conservation. I have testified in court as an expert witness.
Question I have 40 acres on Van Buren Co, AR. S 21, T 10, North R 15 West. This is part of the Fayetteville shale natural gas production. SEECO is the company that drilled. I leased the mineral rights to SEECO.
I am currently receiving royalties of 3/16%. There are 2 wells in production. I receive $1800 to $2000 per month. the first well, 3 years old makes ~ $600 and the second, in production this year, makes ~ $1400. I expect the production of the second well to taper off as did the first well.
I do no know if more wells are planned for that section or not.
I recently received an offer from Frontline Energy, Inc to sell my ownership of the mineral rights. The offer was $2200 per acre. The offer is very tempting to me but I am interested in getting the most I can. I have received other letters of interest but never followed up on them.
What is the value of the rights? How do I get an appraisal? Can I find what others owners sold their rights for? The offer also has the option of just selling half, is that the better option?
Answer If the price of gas remains above $7.00, they will probably drill at least two more wells in the unit. I am assuming they have integrated a 640 acre section as the unit.
An appraisal would be more expensive than your royalty is worth. Your royalty would probably bring somewhere in the neighborhood of $40-$45,000. You might get something for the undeveloped locations, I'm not sure.
