Hey All - I recently inherited mineral rights my Father had won in a BLM lottery in 1981. He passed away without telling anyone about it and I’m not entirely sure why. But I only found out about it after seeing he had an unclaimed property from the State from Plains Marketing - a company I had never heard of. After months of sleuthing I figured most of it out and even got the complete file of every transaction related to this 240 acres from the BLM. Subsequently I have had an offer to sell the rights (12.5%) but I am trying to learn all that I can and understand the current state of affairs in my section before I make any decisions. The property is in Lea County in 23S 35E section 1. For some reason there are very few wells in this section and I do see what looks like sand dunes in much of the area. I’m encouraged to see some new activity (and big production #'s) moving closer all the time. I think I’m may have something big here (or at least hoping like everyone else) but there are so many variables that are unlike other locations. Any thoughts would be extremely valuable.
try contacting hunter davis @ email@example.com who handled KEW Drilling leases for me in the area
Thank you Archie, I appreciate the advice.
It sounds like you did hit the lotto as that is a very hot area with a lot of activity. You are smart to take your time and understand what you have before making any decisions. From what you said, you likely have an overriding royalty interest (as opposed to a mineral interest) so the options are sell all or part or hold and see what happens. Before accepting any offers to sell, make sure you understand who your buyer is and do your diligence to make sure you are getting the highest offer. There are some reputable private equity backed mineral buyers out there who are reputable and really well funded. Generally, if it is a broker making the offer, he is trying to flip it for more money to one of these larger mineral buyers.
Hi Dave - Thank you for the encouragement and advice. I am still waiting for everything to be in my name and hoping for some good news about the oil prices going up again in early 2019. It will be a huge decision as to selling outright or waiting for years for any kind of activity to reach me. Thank you and have a great new year! Chris
Hoping prices jump up this quarter as well!