Today 3/12/26, we received an offer to purchase our mineral rights in Ector County, Texas. The offer was $6300 per Net Royalty Acre (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.
Thank you M_Barnes for your quick reply. Solid advice! Yes, the first contact was unsolicited to ask if we were interested in selling. Perhaps due to very recent court filings to convey ownership from an Estate to individual. After discussion, we provided potential buyer all recent payment info plus provided with the “Deep Minerals” lease which the buyer seemed unaware until shared. Whether he knew previously or not, I do think it is a definite plus for value… that’s why shared with him. I do understand the difference between NMA and NRA. I received the WRITTEN purchase agreement today for review and the $6300/NRA is an overall average… with all but 2 locations priced at $5000/NRA while the other 2 at $7000 and $7800/NRA. You mentioned listing the locations. Here they are below. Thanks again for any feedback!
All of Sections Nos. 6, 7, 20, 30, 32 and 44, Block No. 42, and all of Sections Nos. 13, 23, 24 and 26, Block No. 43, all in Township 3 South, T. & P. Ry. Co. Survey, Ector County, Texas.
Section 5, Block 42, T3S, Abstract A-134, T&P Ry. Co. Survey, Ector County, Texas.
Section 5, Block 42, T4S, Abstract A-158, T&P Ry. Co. Survey, Ector County, Texas.
NW/4 of Section 14, Block 43, T3S, T&P Ry. Co. Survey, Ector County, Texas.
S/2, NE/4 Section 14, Block 43, T3S, T&P Ry. Co. Survey, Ector County, Texas.
S/2 of Section 1, Block 43, T3S, T&P Ry. Co. Survey, Ector County, Texas.
E/2 SE/4 and SW/4 of Section 2, Block 43, T3S, T&P Ry. Co. Survey, Ector County, Texas.
W/2 NE/4 and W/2 W/2 of Section 4, Block 42, T3S, T&P Ry. Co. Survey, Ector County, Texas.
N/2 of Section 12, Block 43, T3S, T&P Ry. Co. Survey, Ector County, Texas.
NW/4 NE/4 and W/2 and SE/4 of Section 41, Block 42, T2S, T&P Ry. Co. Survey, Ector County, Texas.
E/2 and NE/4 SW/4 of Section 42, Block 42, T2S, T&P Ry. Co. Survey, Ector County, Texas.
NE/4 and S/2 SE/4 of Section 43, Block 42, T2S, T&P Ry. Co. Survey, Ector County, Texas.
W/2 of Section 45, Block 42, T2S, T&P Ry. Co. Survey, Ector County, Texas.