Good evening!
My mother-in-law owns some mineral rights in Duchesne, Utah, and is currently receiving ~$500 a month or so in royalties (this is down from $900+ a few years ago). She also received a $50,000 or so signing bonus when she signed years ago.
Earlier this year she was offered $150,000 for her interest, which seems like a dramatically high price to pay for something earning so little. Any thoughts or recommended experts? She doesn’t have a real need for the money now, but obviously $150,000 invested in the market is going to return a heck of a lot more than $500 a month.
Thanks!
If you care to share the section, township and range, we can help with current activity. Buyers usually know what is coming up next, so want to purchase low paying acreage in the path of new horizontals. First offers are usually low and open to negotiation.
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Sure - thanks! Township 4 South, Range 2 West, USM, Section 10.
There are quite a few permits for infill drillin in tnhe sections near you. Fourpoint has multiple two section wells planned. A rig is onsite in section three to the north of you drilling into that two section set to the north. A 3/10 set of wells would be logical. if the geology of reservoir from your first well continues east. Probably why you are getting offers.
This area is in the horizontal development area in the Uinta basin. Fourpoint just bought their position from Ovintiv, and I think your minerals will likely see additional drilling. If you have a decimal of the well in your section and the name, that would help qualify the prior offer. People most often consider pricing on a $/acre metric, and on a cash flow multiple basis (total consideration divided by yearly cash flow). Your offer might seem rich on a cash flow multiple basis, but is justified on the $/acre metric.