I received a $20,000.00 per net mineral acre offer for Sections 25 & 26 Block 76 PSL Survey Loving County from Santa Elena Minerals, LP. Have 5.000 net acres. I would appreciate any advice or information to help me decide how to handle this offer. Thank You.
Please see this thread: http://www.mineralrightsforum.com/forum/topics/loving-county-tx-mineral-rights-value
Linda - EOG has recently permitted several horizontal wells involving these sections. That is why you are getting that kind of offer. However, I believe that offer is much too low as good as it may sound.
LINDA,
the most important aspect of your value determination can be found in the terms of your lease. If you don't have a lease, the value you could realize could be in another stratosphere if handled property. Depending on the lease situation, the nature of the buyer will be quite different. If you think the offerer knows more about your title than you do, you are probably right. Be careful what you sign and thoroughly understand what you are signing. It will make a huge difference to you in the end.
I have one acre in the exact same location and have been getting flooded with offers. It is leased at 25 percent, indemnification clause and production free and clear of all costs. 1.5 years remaining. Willing to sell and in same situation with trying to peg a fair value to it.
Gary... how would you define "stratosphere" ? Thanks
2.5 to 6 times depending on the amount of acreage involved (buyer selection) and demonstrated geologic potential has been my experience in the Delaware and Midland Basin hot spots. But you must use your documents. very important. GLH
Gary,
Thank you for responding to my Loving County purchase offer question. I would appreciate it if you could explain/talk a little more about what/why the terms of my lease have to do with determining value? I'm still new to this process.
Thank You,
Linda