“They hope you don’t realize the future potential.”.
Come on … $10,000 doesn’t seem out of line for 7W acreage that is that far north and in an urban setting.
An alternative is they are making a fair offer based on risk, timing and returns and are realistic about the future potential. Just because some public company says everything si great and all the acreage works doesn’t mean it true…
While you are fortunate that Paloma filed a location exception, the timing until the mythical mulitwell density project is highly uncertain with a P.E. backed group like Paloma. That’s generally not the typical P.E. model, even as the PE model is changing. So if time value of money is meaningless, then you definitely can wait for Paloma to flip their acreage, go public and come back and drill, or be happy to gain a step up in basis and fear Capital Gains tax - which may or may not be 15%-20% depending on you ordinary income.
Which by the way you will have to pay ordinary income tax on your royalties.
Furthermore the costs of acquiring a small parcel is much higher than a larger parcel as the cost to run title isn’t much different for one acre or one hundred acres. The reality is you likely got blanket offer letters based on the regulatory filings and when they hear how many acres you have, most of those that sent letters will not be able to transact at a reasonable price per acre due to transaction costs. There simply isn’t enough acres to spread title and legal fees across.
I can go on and on, but that was a disappointing statement.