We have been approached by country roads minerals to sell 20 acres of mineral rights for $60,000. We think it’s an okay offer but we’re wondering if the land is undervalued and we could make more on a lease. The information we have is that there’s not going to be much activity for 3 to 5 years. Is $60,000 a good offer or should we wait
My family also owns minerals in Marion County. Our net acres we LEASED are about the same as yours. We were approached multiple times to sell and always refused. We leased our minerals last year for more than twice the amount you have been offered. Since 2011, this is the second lease we’ve signed. Wish our ancestors were alive to see the amount of money we have made from leasing and this is without any production as of today. Find a good oil and gas attorney in WV. Do not sell your minerals. The attorney knows the oil and gas companies working in your area. You might end up with multiple offers to lease or buy. We used a lawyer to negotiate our lease and it was worth every penny. Good luck to you.
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There are groups out there paying 2-3X that right now. Shop around. Hire an attorney GTK is a great option and very reputable in Marshall County (Moundsville).
Would meeting with EQT be adventitious?
It can be. They will usually tell you that they intend to drill it within a year or two; then 5 years will go by with no activity, haha. I would call around and get some offers both to lease, and to sell. Ultimately it depends on your situation, risk tolerance and time-frame wants. A lease bonus is taxed as real income, in the end you lose about 40%. A sale is subject to a one time long term capital gains tax, which for most, is 15%.
I urge you to call around!
Don’t sell. That’s my usual advice to my clients who are thinking of selling. The oil and gas rights should be worth more in the long run if you wait for a lease and royalties. Should be. You never know with oil and gas if it will pay out. If you do decide to sell, $3K/acre is really low. Like Lkdec said, Marion County mineral rights should lease for more than what you’ve been offered.
Here’s how I walk my clients through it: if you’re financially stable right now, don’t sell; if the money you get from this will be life-changing, or if you have an investment that you’re very familiar with and will clearly net you a return that you’re happy with, then sell and invest in that.