Today 3/12/26, we received an offer to purchase our mineral rights in Ector County, TX. The offer was $6300 per Net Royalty Acres (NRA). Our family has received production income for decades but has declined, except for a new horizontal well drilled in 2022. Although, last year, we signed ratification for “Deep Mineral Rights” BELOW the Wolfcamp Formation… No info on any activity yet. Is the $6300/NRA a fair price or what range should we consider fair? Thanks!
Any time you get an unsolicited offer, you need to ask “what do they know that I do not know?” Particularly about pending activity. If you want to share the block, abstract name and number plus section, the forum can usually help with that. Offers are generally for the value of the current production for a certain number of years discounted for the time value of money. Buyers will not tell you about potential upcoming wells, because they intend to make a profit off of your purchase. “Fair” is a nebulous word. My attorney used to say “fair” is when a willing and informed buyer under no compulsion to buy and a willing and informed seller under no compulsion to sell agree on a price. They buyer is usually much more informed and whether “fair” is “competitive” is another discussion. Your new ratification for deeper zones is a clue that your operator may have something in mind. You also may have infill wells coming, so find out before making a decision. (And first offers may be low to see who will bite.). Also Net Royalty acres are not the same as Net Mineral acres. They are normalized to a 1/8th royalty.