When the companies come in a drill for oil and they hit a natural gas pocket,?

What is the chances that the pocket that is really small? They had to cap it off and the company is offering to buy the mineral rights to the land for 150,000 dollars. They won’t tell either way how much they think is down there. How big is the average natural gas pocket?
Already signed a contract before they started drilling how much we get if they find anything.

5 Responses to “When the companies come in a drill for oil and they hit a natural gas pocket,?”

  1. Irv S Says:

    Oil & gas are frequently associated with each other.
    Congratulations, you own a hot property.
    Do get the advice of an attourney familiar with such matters.
    You probably want a percentage of the gross income.
    $150,000 is chickenfeed in this situation.

  2. TexasJack Says:

    If this is your land, DO NOT SELL THE MINERAL RIGHTS!!! Hire an attorney who specializes in real estate. They would probably end up having to pay you royalties!

  3. blessed_thang Says:

    The problem with nat gas is there has to be a pipeline closeby. I could point to several pockets in New Mexico. Oil is the better discovery as it can be hauled. But not all oil is good enough. Some oil can be as thick as asphalt. Not sure what to tell you. The oil exploration crowd became a herd of jackals, especially when it comes to pipelines and dispersing the royalties correctly. A lawyer works on retainer plus expenses. Evaluating the assessments and potentials could really eat into that $150k offer. Good luck, I hope it works out for you.

  4. smartguy420 Says:

    Demand a resructuring of the contract. You are entitled to royalties and other types of legal rights which they are requried to pay you. If you do own the mineral rights contact a lawyer ASAP. The oil company will try to screw you out of your rights and get them for cheap. Yuor job is to find out how much the compnay is willing to pay for the access to you land and the oil/ gas conatianed within it. There can be an equally satisfying coantract that can give financial comfort for the rest of your life if the contract is carefully scrutinized by a qualified lawyer.

  5. ccseg2006 Says:

    I need some more info to help you …where are you located …ie. the property … how many acres…. how deep is the well… what royalty did you sign for in the mineral lease …. and whether you contact me or not do not sell your mineral rights …. you can bet they are worth much more than the offer … please contact me me at ccseg2006@yahoo.com and i can give you some info that may be useful … I work in the business ..