My mom inherited Mineral RIghts in Eddie county from her Mother years ago. We just rcvd an offer froma Denver compnay. I want to get a sense of the value before signing. SUggestion on who to reach out to. Below is the legal description: 20 acres S2SWSE Sec 18 18S 26E, Eddy County, NM, 20 Acres E2NWNE Sec 19 18S 26E, Eddy County, NM, 80 acres N2W4 Sec 11 20S 25E, Eddy County, NM.
Suggestions where to check valuation. Over is less then $20K
Before evaluating the offer, I would try to establish exactly what mineral interest is owned. The acreage listed in the legal descriptions doesn’t necessarily represent the net mineral acres owned.
I’d start by reviewing the inheritance and title documentation, any existing leases, and available production or drilling activity associated with the tracts. That information can provide a much better foundation for an independent valuation.
An unsolicited offer can be a reason to investigate, but it doesn’t necessarily tell you what the interest is worth. Taking time to verify the underlying information before making a decision is usually worthwhile.
Most offers to buy are coming before the bit. You don’t necessarily need to answer them, but you do need to understand what you have. The “20” acres may or may not be your net acres. If you are looking at old leases, then it is usually a gross amount. If you have a deed that clearly says that it is 20 net acres, that may be more reliable.
Riley Exploration, Spur Energy Partners, Basin Oil and gas are very active in that area. They have horizontal permits nearby.
20 acres S2SWSE Sec 18 18S 26E, Eddy County, NM, Several horizontals to the east in section 17
20 Acres E2NWNE Sec 19 18S 26E, Eddy County, NM, Several horizontals to the east in section 20.
80 acres N2W4 Sec 11 20S 25E, Eddy County, NM. She should be in pay on horizontal wells here, They have room to drill several more.
If she has no real need to sell, then just ignore the offer.