We wrote several months ago about oil and gas interests and the new trend toward development of previously neglected ownership interests, whether severed from the actual land or otherwise. The trend continues and seems to be picking up pace.
We have recently helped clients with interests in Wyoming, Colorado, Kansas, Alabama, Oklahoma, North Dakota and Texas. New techniques have allowed exploration companies to locate subsurface reserves in areas where it was long assumed there would be no production. Once found, those formations can be better accessed than years ago. Consequentially, many folks are getting unsolicited offers to lease or sell their interests. Some of those interests have been held for generations with no attention from anyone thinking about developing the property.
We have found that when our clients get an unsolicited offer to lease or purchase their minerals, it is rarely the best or most fair price out there. Careful management of the leasing process has often resulted in a lease at a multiple of the original offer. Just like car dealers who buy your old car, these “lease hounds” are buying something they know they can sell for a profit. Also, they probably know more about development trends around the property than you do and they want to get in on the ground floor before the hot area is widely recognized. Be cautious in your dealings with them!
Maybe you, too, can become an Oil Patch Kid with a lot of cabbage!
