I recently received this offer. Does anyone have advice as to whether this is a good offer. Or where I can go to find out more about the best way to get information Thanks.
Section 5-1S-5W Stephens County.
3.365079 net mineral acres already leased 1/4 royalty. We offer $9,750/ac for this= $32,809.52.
1.346032 net mineral acres already leased 1/8 royalty. We offer 4,850/ac for this= 6,528.26
For a total of $39,337.78 to purchase these mineral interests outright.
When I get an offer, I always ask myself…
“What do they know that I don’t know?”
“What kind of profit are they going to make off of me?”
“Do I need to sell, or do I want to hang on and make that profit instead?”
“What time frame am I looking at?”
“Do I need the money now for something really important or can I wait for future value?”
“What pending activity is in the area and when will it happen?”
“What if there are going to be more than one well? Would that change my mind?”
In my experience, all offers that I have received have been lower than what the minerals were worth based on an engineer’s appraisal of present and future value.
I am at the OK NARO convention today and just came out of a session on the valuation of minerals and the speaker said pretty much the same thing. “All offers to buy are low.” Pretty much validates my experience. Maybe using the word “all” is too expansive on both our parts, but I could safely say the majority of offers I have received have been low.
Each family has to do what is best for them. If you need to sell, then get at least three offers from legitimate firms. And ask for more than the first offer.
Thanks for the advice. Such a great help!
There are pending horizontal hearings on section 5, so that answers one of the questions as to pending activity.
Also, if you need to sell, you don’t have to sell all of it. You can sell part and keep part and take care of today and keep some for tomorrow.
I wish I attended, do you know if that session is available to watch online?
M Barnes, Thank you for all the information that you share with all of us on this site! I appreciate you more than I can put in words!
No, it was not recorded, but I hope they post the slides on the NARO website. It was really good!