An offer I can't refuse?

Brand new to this forum and not familiar with a lot of language so bear with me! Owned these rights in Weld County Co. for many many year, started to produce in 2014 and I have been receiving offers for $800K and now approaching $1.1M for 298 NMA.

Thats a big number but that means they know something I don’t. My monthly royalties have decreased but stayed level. What do I do? Any resources, sites or experience y’all can offer?

Township 5 North, Range 61 West, 6th P.M. Section 4: W/2NW/4 NE/4 Section 5: Lot 1, SE/4NE/4

Thanks in advance,


I would take the money and RUN to the bank. I’ve worked in weld county for 35 yrs never seen such uncertainty because of SB 181. Not good for our industry.

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My instinct is telling me the same. The advantage to my acreage is that it is an area that is nowhere near being developed residentially or commercially.

That new Colorado bill scares me as well. I have recently not purchased minerals in Colorado that were a steal because of those regulatory issues. Hate to say it but $1 million plus could buy you large chunks of minerals in friendlier states likes Oklahoma or Texas where you also don’t pay property taxes on mineral rights!

Johnny, Before you jump to sell, looking at the COGCC website, it looks like Bonanza Creek drilled 5 additional wells and is in the process of completing them (per notice on the COGCC website, they are planning to flow back these wells the end of this month). Assuming all goes well, you should see a nice bump in your royalty checks in a few months.

Unless you need to sell, you’re generally better off holding off. And in terms of the offers you are receiving, the ~$3,700/NMA for acreage with pending production is low. (I’m working with a client who is getting this much for acreage not in core Wattenberg and they only have pending permits on their acreage with production still likely several years away).

If you do decide to sell, be sure to get at least 3 offers from credible buyers.

In any case, do go check out the COGCC website as there is a wealth of info (online map interface is awesome and you can look up info on the wells on your acreage).

And while I agree that SB 19-181 has thrown a bit of a wrench in things, I think it is only temporary (until rulemaking gets sorted out). As a whole, prices ARE down from 6 months ago but there are still plenty of buyers focusing on acreage just like yours where new production is imminent. Actually, I think buyers are looking for acreage exactly like yours so you are still in the driver’s seat…

Good luck!

Matt Sands

Let’s say you signed a lease with 20% royalty. After drilling, the well produces an average of 35 BBL/day. And use $50/BBL ; After 8.6 years you would be money ahead by not accepting the 1.1M offer. Obviously if you scored a 25% lease and the average production was more than 35 BBL/day and the price of oiol goes up you’d achieve parity sooner.

Hey Johnny_Joy, not super familiar with your area myself but I do have a friend that is in the mineral buying business with a focus in that part of Colorado. His name is Brian and phone number is 405-417-1203. If you are wanting to sell it won’t hurt to give him a shout and see if he’d be interested in making an offer, personally don’t know much about the mineral market in your area but I do know that if you’re wanting to sell it’s always a good idea to get as many legitimate offers as possible prior to making a final decision.

Dear Johnny.

You can make an assumption that the offeror knows more about exploration and production plans that you do on this acreage.

If you want to sell, you do not have to sell all that you own. You could sell part and keep part. However, I would be hard pressed to sell. Have I sold in the past? Yes. Medical emergency, not to buy a motor home.

Best of luck,

Buddy Cotten

Famous what do you mean by “minerals in friendlier states likes Oklahoma or Texas where you also don’t pay property taxes on mineral rights!” ? The Ward County Texas tax man sends me a bill yearly for my minerals. Just wondering if I’m missing out on some type of exemption.

He must mean that you do not pay property taxes on minerals not in production.