So glad this site is here! I have a 1 acre mineral lease from 12/29/15 with BHP Billiton that gave me a $2k bonus, 1/4 part and no production fees. I have not received any additional payment.
In the last 3 months I have been getting multiple offers to purchase these rights. Some stating up to 14K others 20K plus. I finally called one of the people that actually called me and got an offer of $7K. I see purchase quotes that widely vary, but seem to be trending upward.
1) Should I just keep this parcel and wait for a return?
2) What could I reasonably expect from 1 acre if it starts to produce?
3) Is $7K a lowball offer to purchase an already leased acre? Some of the letters I have go were up to 20K per acre.
Any feedback is appreciated!
Todd
Sections 25 and 26, block 76 Public School Land Survey A-879 A880 Loving County, TX
Someone with more knowledge please chime in; My though on this offer is that they want to purchase your small 1-nma rights so they can profer a lease and force/pool other co-owners into a lease they don't want or have turned down. If you're really in need of selling your 1-acre nma mineral rights, perhaps see if others mineral owners in the section are interested in purchasing?
AJ is correct, there are multiple horizontal well permits in that area. Your lease was most likely assigned to Anadarko. They have a few older permits in the area, but the majority of the permits filed are from EOG. Without doing more research I am not comfortable saying whether or not your mineral interest is likely to be produced.
With regards to Mr. Skoglund's comment, I do. not think that is likely. Small interests with a mailing address in a different county are highly sought after search parameters for royalty buying companies when they purchase contact lists.
My advice is to find a solid offer over 20k, and if there is a better use for that money, take it. The production from a 1ac tract could take lifetimes (possibly never) to pay that amount. Feel free to contact me if you have any more questions.
Thanks for the replies. Yes, I am in the market to sell, but trying to determine a fair value seems elusive. Many letters. Not trying to retire on this, but don't want to give it away at a 50 percent discount either.
One of the best areas in the US to own minerals, paired with multiple permitted wells by one of the best operators in the business... Your minerals, even with just an acre, are quite valuable. I personally wouldn't sell given EOG's development plan, but if you are intent on selling, you might consider reaching out to the forum sponsors to see what prices they're witnessing in that area.
