And there was much rejoicing in the land.... Gas Prices

[Ruffdaddy]

Lol...great minds....

[bcoop]

I was talking to the guy who owns the mineral rights to our property the other day, and he mentioned that they were trying to sell everything they could.

We're now trying to figure out how much it would cost to buy them back. Not to drill or anything, we just get irritated with the inbred retards that come check the wells leaving trash around, leaving the gate open, etc.

[bcoop]

Did you guys sell the rights, or buy the land without the rights?

My grandfather bought the place without the mineral rights, unfortunately. I do not know if the guy he bought the place from had them and sold them separately, or if he never owned them either.

[Sean88gt]

Did you guys sell the rights, or buy the land without the rights?

The vast majority of land bought now only carries the surface estate. One reason that a land man makes solid cash is researching the chain of title and severance of the land.

Oil is God in Texas law, and the state's bias towards production is clearly exhibited.

[bcoop]

The vast majority of land bought now only carries the surface estate.

Yep. In my search for land locally, not one piece listed that I've seen includes mineral rights.

[Strychnine]

Im less worried about oil...more worried about the entire economy at this point.

Let me go dig up an article I read earlier today about how the O&G crash could spread to rest of the economy a la 2008. BRB.



In the mean time, here are some pics of one of our 500 series service rigs headed to California's Oil Platform Grace - 10.5 miles off the coast of Ventura, CA near Santa Cruz Island. The pics are being featured in Oil Pro's newsletter tomorrow so I don't mind posting them here too.

[bcoop]

Which sucks, because you'd at least have a basis of pricing for buying it back.

Yep It may just be a pipe dream. We have 260 acres, and I have no idea what something like that would cost. The conversation came up because we told him they need to get busy putting down some rock and grading the road. It's washed out to shit right now. That's when he mentioned they were selling everything they could.

Right. The guy we bought this place from wanted to keep the mineral rights. We told him that was a deal breaker. Not because we think we're sitting on a pile of gold and oil, but just to make sure no one comes out here to screw with the property for any reason, masked under the excuse of drawing out minerals or exploration.

That's the thing. We aren't interested in getting in to oil and gas or anything, more just to keep people off the place. They have treated us pretty well since they put the wells in back in the early 2000s. But I'm not convinced one of his laborers wasn't involved in our theft as a spotter or something. His labor turnover seems pretty damn high.

[David]

Everything I've found with mineral rights, it's triple what the property is worth because they think there's something under there.

[bcoop]

Everything I've found with mineral rights, it's triple what the property is worth because they think there's something under there.

Ouch!

[Frank]

I found this interesting article here, but I am skeptical for several reasons. Supposedly no cargo vessels are moving right now. http://www.zerohedge.com/news/2016-0...-has-come-halt

Even if the number is very low, it signals a very bad thing. The index does not lie.

[Strychnine]

I found this interesting article here, but I am skeptical for several reasons. Supposedly no cargo vessels are moving right now. http://www.zerohedge.com/news/2016-0...-has-come-halt

Even if the number is very low, it signals a very bad thing. The index does not lie.

Don't take that link as any sort of gospel. The oceans look empty on the marinetraffic map because there are no receiver stations in the middle of the damn ocean. Those maps are reading transponder data meant for nav near ports. Of course they won't show shit in the middle of the Atlantic, it's not satellite based.

What is AIS?
AIS is initially intended to help ships avoid collisions, as well as assisting port authorities to better control sea traffic. AIS transponders on board vessels include a GPS (Global Positioning System) receiver, which collects position and movement details. It includes also a VHF transmitter, which transmits periodically this information on two VHF channels (frequencies 161.975 MHz and 162.025 MHz – old VHF channels 87 & 88) and make this data available to the public domain. Other vessels or base stations are able to receive this information, process it using special software and display vessels locations on a chart plotter or on a computer.


What is the range of AIS?
Normally, vessels with an AIS receiver connected to an external antenna placed on 15 meters above sea level, will receive AIS information within a range of 15-20 nautical miles. Base stations at a higher elevation, may extend the range up to 40-60 NM, even behind remote mountains, depending on elevation, antenna type, obstacles around antenna and weather conditions. The most important factor for better reception is the elevation of the base station antenna. The higher, the better. We have seen vessels 200 NM away, with a small portable antenna placed on an island mountain on 700 meters altitude! Our base stations cover fully a range of 40 miles and periodically receive information from some more distant vessels.

Right now there are three tankers leaving Galveston headed for Venezuela, Panama and The Netherlands... and they'll disappear from the map in a bit then reappear when they near their destination.

[Sean88gt]

Which sucks, because you'd at least have a basis of pricing for buying it back.

Right. The guy we bought this place from wanted to keep the mineral rights. We told him that was a deal breaker. Not because we think we're sitting on a pile of gold and oil, but just to make sure no one comes out here to screw with the property for any reason, masked under the excuse of drawing out minerals or exploration.

How many acres? If it's just a small portion, you likely don't have to worry. It'll be part of a larger survey that is cut down. That is where O&G calculations get complex. When you're looking at mineral interest vs. royalty interest, who owns what, and at what percentage, and so forth. We looked at a case where interests were 1/8192, based on prior reservations.

Regardless, if it's a residential area, the chances of them coming onto your property is almost non-existent, plus there are statutory provisions against it (where they can drill, how close to boundaries, how many drill sites per land size, etc).

Yep It may just be a pipe dream. We have 260 acres, and I have no idea what something like that would cost. The conversation came up because we told him they need to get busy putting down some rock and grading the road. It's washed out to shit right now. That's when he mentioned they were selling everything they could.

Probably more than you would want to consider. If I ever had minerals, I wouldn't release or sell them.

That's the thing. We aren't interested in getting in to oil and gas or anything, more just to keep people off the place. They have treated us pretty well since they put the wells in back in the early 2000s. But I'm not convinced one of his laborers wasn't involved in our theft as a spotter or something. His labor turnover seems pretty damn high.

Even if you did own the minerals, it might not matter. If there was a play of 30,000 acres surrounding your property (in Texas), and you were trying to stop them, they would still gain control of your minerals through forced pooling. When I say that "Oil is God in Texas", it is. The mineral owner gets compensated for the extraction, but the extraction still happens, regardless if that owner has minerals, surface, or both.

Everything I've found with mineral rights, it's triple what the property is worth because they think there's something under there.

I don't know if there is an exact scale, but it's up there. A friend's dad sold his land with minerals for north of $800MM. The land wasn't worth anywhere near that, but they had wells producing in paying quantities, and a lot of room for future production.

[GrayStangGT]

In the mean time, here are some pics of one of our 500 series service rigs headed to California's Oil Platform Grace - 10.5 miles off the coast of Ventura, CA near Santa Cruz Island. The pics are being featured in Oil Pro's newsletter tomorrow so I don't mind posting them here too.

Growing up in West Texas it is crazy to see a pulling unit being craned onto a boat. Very cool pics.

[Ruffdaddy]

Will we see 20s today?!?! It seems the question is no longer if...but when.

[03mustangdude]

doubt 20's today but if nothing improves before the end of the month for sure.