i recently received an offer from SW Petroleum to buy my mineral rights in Live Oak County Texas. I occassionally receive these kind of offers from various oil companies, etc. I am just trying to get some feedback as to these kind of offers. Are they legit? Are the offers ever decent or should they just be ignored? Thanks!
Timothy:
There are many firms trying to buy existing minerals and yes, I think most are legit but they are most likely offering thousands less than the minerals would be worth. First, I would never ever sell mineral rights as one day these could possibly become a good or great extra income. Second, I have found that these firms zero in on the "hot" areas where they know production history is very good. Finally, I have also recieved offers over the past several years and they all end up in the waste basket.
Timothy:
I would contact other mineral owners in your area in order get an idea about what the going rate per acre. Also, you can shop around and find out who is acitively leasing in the area and contact each company. I am not familiar with that area but the % royalty in my areas are now about 16 to 20%. Also, remember to be aware the length of the lease. I am not signing for more than 3 years.
Timothy W Houston said:
Thank you for the feedback........Live Oak is a hot spot and I have seen a big increase in the terms of the lease offers.......which leads me to how does one really know what a reasonable offer is (Per min acre/and %)?
charles s mallory said:Timothy:
There are many firms trying to buy existing minerals and yes, I think most are legit but they are most likely offering thousands less than the minerals would be worth. First, I would never ever sell mineral rights as one day these could possibly become a good or great extra income. Second, I have found that these firms zero in on the "hot" areas where they know production history is very good. Finally, I have also recieved offers over the past several years and they all end up in the waste basket.
Timothy, did Southwest give you an offer? Do you mind sharing what that off is?
Timothy, what do you mean by you earned 4k last year? Is this property currently under production?
Is the 14k offer per acre or total? If total, how much per acre is that?