San Saba Royalty Is this offer Legitimate Dallas Texas

Hi Jokila-

Please see my previous response.  If you like our "super nice offer" then we will buy it if you own it. 

We have bought about 2000 interests totaling $200,000,000.  This does not happen by being unethical and immoral. However, your libelous comments about our company are unethical and immoral.

I welcome any potential sellers with concerns to call me at 214-466-6684.

If you have an offer from us and would like to sell, please call us. The offers are legitimate.

Sincerely,
Everett Coon, Partner

I received an offer from San Saba this past month.

What is amazing is that I received an offer from San Saba Royalty and from another company in Texas. No, not that I got one, but that practically WORD FOR WORD, the letter was just like the other solicitor. What are the odds of that?

The only thing different was the amount of the offers. They had the same "redraft" wording on the draft check and promised the same things. 

Oh yeah, they were super nice offers, but after reading what they are about I can see that these companies are just trolling for customers. This isn't the first time I've gotten offers. It doesn't take much to go to the Railroad Commission facility and find suckers to send out "phishing" letters. On the Interrnet we call it "spam". 

It's perfectly legal to sucker people, but it's unethetical and immoral. These practices will continue to go on, but thanks to websites like this one, there is one less sucker born every minute. 

Dear Itboss:

I'll address your comments in the order you made them in your report.

Your mother's two offers are legitimate. Please send in the paperwork and if she owns them free and clear we will close them within 30 days.

Since you may not understand oil and gas economics, I'll give you one example of how a gas unit that is producing more gas than another can be worth less money. Gas Unit A is comprised of 40 acres and has one gas well on it producing 200 mcf/day. Gas Unit B is comprised of 640 acres and has one gas well on it producing 100 mcf/day. Assuming both units are in an area that has development potential Gas Unit B might be worth alot more than Gas Unit A. The reason is that Gas Unit A cannot have any more wells drilled on it, while Gas Unit B may have many more drilled on it (15 more using 40 acre spacing). There are other examples..decline rate differences, geological potentials, etc.

We have never used a trolling approach or even heard of that technique until reading Jack's report.

Now to the gotcha's. First, the sale is binding only if the the following items have occured: The deed has been signed by the seller, the deed has been delivered to the buyer and the seller has received the consideration for the amount that has been offered in the letter. Secondly, the amount will NEVER go down unless the seller does not own the interest that is described in the deed. Third, the reason for the royalty stub has nothing to do with volumes. Before we send out offers on any unit we do an engineering report on the unit. We know exactly what they are producing. The reason for the royalty stub is that it is the 1st stage of our due diligence effort. It confirms to us that as of the date of the check the seller still owned the interest and confirms the net interest in the unit that the seller actually owns. About 8% of the people that enter into potential transactions with us have already sold their interest to someone else. So this quick check of the check stub saves alot of time for us.

So far not one thing in your report is true, except that we made two offers to your Mother. I would hope that after reading my rebuttal so far you would come up with a different conclusion than you did in the 4th paragraph.

I have been working the area for over 25 years and I don't believe there is a Cotton Patch field in East Texas. I did some research of my own and discovered that Cotton Patch field was a two well field in South Texas that consisted of two wells that appeared to be uneconomic. Maybe you were thinking of the Cotton Valley formation. Anybody that receives royalty checks or knows anything about East Texas knows that there is a potential for more drilling and new geological finds.

In the last five years we have completed over 800 individual transactions totaling just under $100 million dollars. A phone call to any county clerk in East Texas would verify the many transactions that we have completed. We provide a valuable service by offering liquidity to owners wanting to monetize their mineral assets.

I welcome Jack, Itboss and any potential sellers with concerns to call me at 214-466-6684.

If you have an offer from us and would like to sell, please call us. The offers are legitimate.

Sincerely,
Everett Coon, Partner