What are some factors that need to be considered when selling my minerals?

When the price of natural gas is low and there are no or few wells in the unit containing your mineral interest, it can be tempting to sell for the immediate funds, especially in tough economic times when cash is needed and the future production of minerals is uncertain. However, natural gas wells in the Barnett Shale are expected to be productive for more than 40 years, so it is important to consider the potential number of future wells, the potential performance of those wells, the long-term outlook for natural gas prices, the potential for discovery and production of other types of minerals, and the potential legacy that mineral ownership provides your children and grandchildren.

What effect can future technology have on the sale of my minerals?

Other factors to be considered before selling mineral property, such as technological advances, may be difficult to project but can dramatically affect the future value of the mineral rights. Even with current technology, much of the gas in the Barnett Shale remains in the formation after we have drilled our wells. Chesapeake estimates that only about 30% of the gas in the Barnett Shale is recoverable with today’s technologies. Improved technologies in the future should increase a larger percentage of the currently unrecoverable gas in the Barnett Shale, which would result in additional and longer-term royalties to the mineral owner.