My elderly mom owns about 10 net mineral acres in Reaves county (block C5 sections 1,2,11 and 12) She has gotten many unsolicited offers the highest was 20k per net mineral acre.
The lease is with Patriot for 25% only have one current producing well and another well that is 1/3 on one of her sections.
I am trying to figure out what these mineral rights are worth and thinking if the price is high enough it may be a good time to sell.
Does anyone have any opinions of what these rights may be worth? and also what would be the best way to sell them?
Thanks in advance for any help on this.
Hi David: Would highly recommend Marcus T. for advice and possibly finding a good buyer. Have done business with him and cannot stress how friendly, helpful and fair he has been. He is a member of this forum.
Best of Luck,
Nancy
David,
the mineral rights in your area are worth more than the value of the Proven Reserves identified by one horizontal well. It is likely that there will be many more wells drilled in the future that includes your mother's minerals. However, the schedule of development is out of your control as the lessor. If you want to consider selling, find the investor that needs the asset the most then structure a contract that insures you get what you bargain for. Sales contract terms, including deed forms are EXTREMELY important in getting fair market value.
Holding an auction will almost always prove unsatisfactory to the seller when the buyer already knows who needs the property the most. At the prices quoted and the leverage the buyers want, it is worth getting an appraisal of the fair market value then setting a price and terms that suit your mother. Since she is elderly, a clean deal at a fair price by a time certain could be very important to her future.
Gary L Hutchinson