You'll find good and bad players in any industry. Most mineral owners receive frequent low-ball offers by mail, but I've also evaluated many properties where I was shocked how much some buyers are willing to pay (to the point of never being able to make their money back). There is a whole spectrum of mineral buyers out there.
That is a good question and not an easy one to answer. It is probably easiest to buy minerals at auction (but not the most cost-effective) or from a broker (which one depends on what you are looking for). You have to be careful because there are many listings with ROIs that are longer than the well will likely produce. You'll see non-producing minerals listed for absurdly high prices (or even for low prices but with very little chance of development). You'll see mineral valuations based on the first few months of production, which decline steeply in the first year or two. There are a lot of pitfalls - too many to list, so, be careful. You really need to know what you are doing so you can do the proper due diligence. Maybe enlist the help of a landman to help you evaluate deals?
Does your company provide consulting service to perform due diligence on a potential opportunity? some owner wants to sell their Oil and Gas Royalties and we were wondering if there are any specialized firms out there who does due diligence on our behalf and I stumbled up on this video. thanks in advance.
This is not a service that I offer at the moment, but I might in the future. For now, you could hire a landman specializing in the potential minerals' location. Or, depending on how large of a deal this is, you might want a petroleum engineer.
@@BlueMesaMinerals sry to bother but one last question. Have you heard about Eckard enterprises? Looks like this company does a great job partnering with retail investors to buy mineral rights. I have not seen much reviews online so asking here since you are in the same space and heard about them. Thanks much in advance.
@@venkatn4689 I have not heard of Eckard Enterprises, but working interest is the most risky of all mineral rights. I would be very cautious about working interests.
Yep. That's a common sentiment. Everyone wants someone to explore and develop the minerals that they own. The oil and gas industry is facing some dry years now, so it might be a while before we see growth again. For more about the slowdown: ua-cam.com/video/b_97Cg52FJk/v-deo.html
Blue Mesa Minerals. Wells are being produced (already drilled and fracked) on my property in Howard and Martin counties. Oil companies think I don't know, so make ridiculous offers.
@@BlueMesaMinerals I'll bet you are...But to get free money in the amount of 1/8 th to 1/3rd off the top plus leasehold/bonus is ludicrous (thanks to dumb ass oil and gas production companies). The largest cost by far in any drilling venture is the royalty burden. The only upside to the industry going south is the diminished royalty payments
@@cyrilriceball2294 It isn't free money. Mineral rights are "real property," and property owners have a variety of rights, often referred to as a bundle of sticks. One of the executive rights is to enter into an oil and gas lease. When you lease your mineral rights, you are giving the company that drills the well a vast majority of the proceeds (75% -87.5%) from selling any recoverable oil, gas, and other minerals. In exchange, the company assumes the burden and risk associated with drilling and operating the wells, including paying the mineral owners. Even when minerals are owned by the state (the percentage varies from state to state), the operators still pay royalties to the state (or federal government).
@@BlueMesaMinerals Thank You for telling it the way it is. I do know this stuff as a retired Petroleum Engineer evaluating oil field property value for some 45 years. Also, FYI, some operators offer 1/3 in super hot areas (stupid on their part, but fact). I too tried to buy royalty. They all think you are trying to rip them off and none sell unless they are desperate for $$$. Usually, there are several mineral owners in the same well and some ownership is wellbore ONLY. Ask me, 90% of the 10% DF is more than reasonable. If your really want prospect, come up with re-entry prospects to promote and offer an ORRI. Royalty owners are just using you to value their asset (said another way, free reservoir engineering). Toward the end of my try, I offered to evaluate the property for $125/hr. (which is customary. See the result of that try - If you gave my neighbor a free evalution, you are obligated to me.
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
Good information
And there are companies that sent out offers to mineral owners that are about 1/20 or less of what they are worth.
You'll find good and bad players in any industry. Most mineral owners receive frequent low-ball offers by mail, but I've also evaluated many properties where I was shocked how much some buyers are willing to pay (to the point of never being able to make their money back). There is a whole spectrum of mineral buyers out there.
Thank you for this video. What site do you recommend for someone starting small?
That is a good question and not an easy one to answer. It is probably easiest to buy minerals at auction (but not the most cost-effective) or from a broker (which one depends on what you are looking for). You have to be careful because there are many listings with ROIs that are longer than the well will likely produce. You'll see non-producing minerals listed for absurdly high prices (or even for low prices but with very little chance of development). You'll see mineral valuations based on the first few months of production, which decline steeply in the first year or two. There are a lot of pitfalls - too many to list, so, be careful. You really need to know what you are doing so you can do the proper due diligence. Maybe enlist the help of a landman to help you evaluate deals?
Thank you.
Does your company provide consulting service to perform due diligence on a potential opportunity? some owner wants to sell their Oil and Gas Royalties and we were wondering if there are any specialized firms out there who does due diligence on our behalf and I stumbled up on this video. thanks in advance.
This is not a service that I offer at the moment, but I might in the future. For now, you could hire a landman specializing in the potential minerals' location. Or, depending on how large of a deal this is, you might want a petroleum engineer.
@@BlueMesaMinerals sry to bother but one last question. Have you heard about Eckard enterprises? Looks like this company does a great job partnering with retail investors to buy mineral rights. I have not seen much reviews online so asking here since you are in the same space and heard about them. Thanks much in advance.
@@venkatn4689 I have not heard of Eckard Enterprises, but working interest is the most risky of all mineral rights. I would be very cautious about working interests.
How do I contact you
You can contact me here: bluemesaminerals.com/contact/
I got 120 acres full of oil and nat gas. Been in our fam since 1880. I aint selling! I am looking for oil rig. Rites, not rights, fyi.
Yep. That's a common sentiment. Everyone wants someone to explore and develop the minerals that they own. The oil and gas industry is facing some dry years now, so it might be a while before we see growth again. For more about the slowdown: ua-cam.com/video/b_97Cg52FJk/v-deo.html
Blue Mesa Minerals. Wells are being produced (already drilled and fracked) on my property in Howard and Martin counties. Oil companies think I don't know, so make ridiculous offers.
Oil is booming from what I see on the field
What is real is no one but the state should own what is under the ground
As a mineral owner, I'm very appreciative that the law developed in this way in the United States.
@@BlueMesaMinerals I'll bet you are...But to get free money in the amount of 1/8 th to 1/3rd off the top plus leasehold/bonus is ludicrous (thanks to dumb ass oil and gas production companies). The largest cost by far in any drilling venture is the royalty burden. The only upside to the industry going south is the diminished royalty payments
@@cyrilriceball2294 It isn't free money. Mineral rights are "real property," and property owners have a variety of rights, often referred to as a bundle of sticks. One of the executive rights is to enter into an oil and gas lease. When you lease your mineral rights, you are giving the company that drills the well a vast majority of the proceeds (75% -87.5%) from selling any recoverable oil, gas, and other minerals. In exchange, the company assumes the burden and risk associated with drilling and operating the wells, including paying the mineral owners. Even when minerals are owned by the state (the percentage varies from state to state), the operators still pay royalties to the state (or federal government).
@@BlueMesaMinerals Thank You for telling it the way it is. I do know this stuff as a retired Petroleum Engineer evaluating oil field property value for some 45 years. Also, FYI, some operators offer 1/3 in super hot areas (stupid on their part, but fact). I too tried to buy royalty. They all think you are trying to rip them off and none sell unless they are desperate for $$$. Usually, there are several mineral owners in the same well and some ownership is wellbore ONLY. Ask me, 90% of the 10% DF is more than reasonable. If your really want prospect, come up with re-entry prospects to promote and offer an ORRI. Royalty owners are just using you to value their asset (said another way, free reservoir engineering). Toward the end of my try, I offered to evaluate the property for $125/hr. (which is customary. See the result of that try - If you gave my neighbor a free evalution, you are obligated to me.