A landman just phoned me to buy all my mineral rights which are in Latimer, Marshal, Grady, and Custer county. The only 2 that are producing now are in Marshall and Grady. Looks like they are going to be drilling in Custer County. It was quite a lot of money considering my yearly income is negligible. Trying to figure out the value of minerals and why he offered me so much. If anyone can point me in the right direction to get help. The Custer county minerals are in Section 5 and 8 Township 12 North, Range 19 West.
Thanks for the help~
Welcome to the forum. Mewbourne is planning a horizontal well in the Custer acreage and there will be room for more, so this is why you are getting the offer. Offers are usually lowball to see if you will bite. They are for approximately three-five years of production discounted for the time value of money. Horizontal wells can last decades. Additional horizontal wells over time will add up further. They want those royalties. The question is “do you?”. Horizontal wells production is much higher than vertical wells as they perforate thousands of feet of reservoir, not just a small amount.
The Directories tab above lists appraisers. Pecan Tree generally handles west of the Mississippi River and Vass handles east of the Mississippi. They can give you a general feel for what you acreage is worth.
DON’T SELL!! They know something you don’t, and you’ll be selling away lots of future income for you and your heirs for PENNIES!!!
I would not even reply to an offer to buy all of my minerals everywhere. Not even worth a conversation and letting a foot in the door in my opinion.
Find out what is going on in each area and then deal with them individually after you understand if you have royalties in suspense, royalties being held at the state, future activity, etc. Once you are educated, then you can decide if you want get all your royalties paid to you, make money on leasing or pooling and future wells or still want to sell. If so, then you can advertise on a legitimate auction site or get bids from several buyers.