I was asked to sell my Louisiana Oil & Gas royalties (royalty interest) & mineral rights. Is this a good idea

Question

I own a tract of land in North Louisiana, there has never been much production around my property. I have been offered a nice amount of money to sell my mineral rights and my royalty interest. Should I sell my Oil & Gas royalties?

Answer 1

I sold 1/2 of my royalties.  I paid off my high interest credit cards and a loan.  They had lots of drilling around my property but  I needed the money.  They drilled a well on my land, and it produced for about 5 months and then they could not produce the natural gas any longer.  I made about $25,000.00 by selling.  I would sell again, because you never know whats going to happen with the well.  Just because there is production near your property doesn't mean they can get the gas or oil from your land.

Answer 2

If they're making you a "Nice" offer, it must be worth a heck of alot more. If I were you I would retain ownership rights and allow them to drill with you getting a percentage of profits of the oil & gas. If they refuse- Don't Sell and WAIT for them to call you back if they change their mind- Remember, " He who cares the LEAST has the most Power" You can also contact other oil companies to see if they would be willing to negotiate a percentage- this gives you a chance to create competition

Answer 3

I would only do so if you plan never to use the land for anything. If you were to put a building or company on this land the people that bought the rights to the Minerals could come in at anytime and start digging.

I would check the laws in Louisiana before doing so. I am in a different state and know that once the mineral rights are sold you pretty much have no say in what they do with the land.

Answer 4

are you kidding me --heck no just get on yahoo news today there is a couple in ND i think that are ,millionaire in just 1 year from mineral rights

Answer 5

I would consult and attorney.  There's a reason for everything!!!!

Answer 6

A good offer should compensate for at least 90 months of potential future income. You can contact the department of natural resources and they can help you research production near your property. With so much uncertainty with Oil & Gas exploration, it is hard to pass up guaranteed money. You never know if they will drill a good well. You can also sell a percentage of your interest now, keep the rest and see what happens. A good offer will compensate you enough that even if they drill a good well, you have many years of advanced royalties in the bank. Selling in Louisiana always has great tax advantages (as opposed to accruing royalty), this makes the offer that much more appealing. Do your research. People who invest in speculative mineral rights (no history of production) take huge gambles. Keep in mind, even if they plan to drill a well, it can be years before you receive any payment from the well. A bird in the hand is worth two in the bush. GOOD LUCK!