I have been offered 1,ooo. to sell my mineral rights, need to make a desicion soon whether to sell or wait for a lease. I own 75 acres in Hidalgo TX. Was wondering if this is fair market value, this property was leased before but was not drilled. Was told that there is little leasing activity in this area, any feedfack will be appreciated.
Marite:
This decision to sell or lease will be totally up to you but I would never sell mineral rights unless I needed the money immediately or if the price was extremely high per acre. That said, if you toy with the idea of selling, I would first do some research about the amount of production the wells in the area are currently making and this information should be posted on the Railroad Commission of Texas website. Also, you might try and find out if others have sold in that area and get some idea what the minerals sold for. After doing the research, then find out what bonus amounts are being paid to lease acreages in your area. At some point, you will have to weigh the two sides and decide which will be more economically attractive in your situation. Also, you will want to figure out the taxes you will owe as a result of the sale. I am not familiar with that particular area but it is either near or in the Eagle Ford Shale play which is currently coming up with good production numbers. This company or individual offering to buy these minerals is possibly a broker who will in turn possibly make thousands of dollars on your decision.
Companies are unlikely to make offers on your mineral rights unless they believe they can make a profit. I would be very skeptical of any offer to purchase mineral rights. These guys are usually looking for a desperate sucker to sell at a huge discount.
They are offering you $13.34 an acre for your mineral rights, which is a mere pittance! As the others have advised, keep your minerals. I wouldn’t believe there is little leasing activity. That sounds like someone trying to convince you that your minerals have little worth. If you want someone to assist you in leasing, I can recommend Buddy Cotten, a landman on this forum.
The title says $1,000 per acre. That's not chump change.
Marite D.,
Depending on whether it was a $1,000 total or $1,000 per acre will give you an indication of how serious the other party is.
Thank you all for the replies, the offer is 1,000 per acre, the description of the property is " A part of the Missouri-Texas Land & irrigation Company Subdivision of Las Mestenas Grant, Hidalgo County. Blocks # 38,39,40 45,46&47. I will start the research with the Texas RR commision, I have looked at it in the past but could not figure out how to get the info I need, will try agian. will also try to get hold of Mr. Buddy Cottten.
I WOULD NOT sell mineral rights for ANY REASON - once they are sold, you can never get them back.
Hi Marite,
It sounds like you don't know Buddy Cotten's contact info. If this is the case, private message me for complete info.
Yours,
Wes Luke
No matter what anyone tells you, they can not predict the future nor the future price of oil or that of minerals. If you are getting an offer chances are there maybe future activity but after checking into it if you are still indecisive then only sell half. If recession sets in again this time it maybe worse and longer, Japan has been in one for over 20 years. If the USA has problems so will the emerging countries (common sense). If oil goes back to the norm in price they probably will not be offering the same $1000 per mineral acre. Oil price charts look like we are back in bubble status, up 800% in 13 years is bubble status, well it was 800% before the sell off this week. I would rather have oil than $2000 an ounce gold though as my car won’t run on gold and I can’t eat it either.
Marite,
Sorry, I missed your heading. Even at $75,000, it wouldn't make a difference to me. Although not chump change, I have an idea the actual value is much greater. Hopefully, Mr. Cotten can assist you in leasing your land for much more than this amount.
Mineral Joe, I don't believe the recession has ever ended. World-wide demand for oil will keep the price at a certain level. I doubt that we will ever see $10 a barrel oil again, but anything is possible. I am hanging on to my minerals! You can sell yours if you want.
Hi Wes, you are right I do not know Mr. Cotten, I signed up to be friends with you so I can e-mail you, not sure if I did it correctly, trying to learn to navigate this site,
Marite: Go to the cover page of this forum, look on the left side and find POPULAR CONTRIBUTORS, you will see Buddy Cotten, click on that and this will give you his email address.
Hi Marite,
I answered your message. If you need anything else, just say so. I'm all about helping people.
Yours, Wes
What’s the company name I have a friend looking to sell his if he can get that he would love it. 700 acres worth. Please post it up or add me as a friend and send a pm Thanks in advance…
I would never sell my mineral interests. I get a few letters every year offering to buy or to quote me a purchase price. I call these "sucker letters". Years ago, one of these letters came after a well was drilled but before the Division Order arrived!
Glad you could chime in on what you would or would not not do..It really dont give a Frack to tell the truth......
Let this be clear on this thread and the Froum as a whole '' what anyone on here does in regards to buying or selling minreals is there own business " Im so sick of people beating someone up over wanting to sell..
Why so vehement Mr. Stamps? I didn’t hear anyone beat anyone up about selling mineral rights anywhere on this site. Could it be because you are a landman and such advice impacts your business ? I get sucker letters also, as out of state mentioned. I think we should also be clear that In this forum as a whole ( if you can speak for the forum, so can I ) mineral rights owners should give the advice that from their experience they think best. And if you don’t like this, I could give a frack! Have a nice day!
Brian Stamps said:
Glad you could chime in on what you would or would not not do..It really dont give a Frack to tell the truth......
Let this be clear on this thread and the Froum as a whole '' what anyone on here does in regards to buying or selling minreals is there own business " Im so sick of people beating someone up over wanting to sell..
Brian, you make a good point that someone wanting to sell should not be attacked. My best guess is it’s probably helpful for someone contemplating a sale to realize that many owners feel it is something they would never do. The person wishing to sell has the difficulty of analyzing the trade-off: getting a specified amount of money now versus a very uncertain amount of money later, anywhere from zero to who knows how high or when. And only the individual knows what he or she plans to do with the proceeds of the sale, e.g. maybe paying the rent, or maybe investing in a profitable business. In my personal situation, I don’t need the money now, and would rather hold on to the minerals in hopes that I’ll get bonus and royalty income in the future which exceed the proceeds of any possible sale. Anyone who has found this forum is not going to be a “sucker”.
I think the bottom line is: There your’e minrerals and you decide whether to sell or lease depending on your preference. I personally, am one that will always hold on to my minerals (unless someone is willing to pay a ridiculous price) but that is my preference. I think what some on this board is referring to is the individual who has no knowlege of what’s going on and sells their minerals at an amount far below their value. Again, these are their minerals and their decision.
I want to know who was attacked or beat up ? I’ll admit I don’t read absolutely everything, but I have never seen anyone attacked for wanting to sell. I would like to know the thread it occoured in, it certainly wasn’t this one.