My parents have received an offer to buy their Overriding Royalty on some property in New Mexico. This royalty come out of some exploration work they funded a long time ago that was very promising but sadly there were some technical challenges with the drilling and they didn’t have the capital to rescue the operation.
I think they are torn. On one hand this offer is good, but it isn’t quite what their hopes and dreams had been back in the day.
Any suggestions? The offer appears to have come from a reputable source, but the company doubled it’s offer in the first 24 hours!
Thanks in advance
Hilltop Royalties is a forum advertiser and a gentlemanly outfit. Suggest you run the offer by them. (I have no financial interest in the company.) Also, it sounds like your parents are sophisticated investors and that other than the above, I could not offer any information which would help them arrive at a fair market value on a property somewhere in the Permian Basin in New Mexico. Did anyone ask the agent how the offer could have increased so dramatically in one day?
In my experience, these unsolicited offers are all over the board and the first company rarely pays the most because they are often brokers trying to flip them to the larger mineral buying companies. You might consider having a landman or mineral manager help you sell your interest or talk to you about whether you should sell your interest.
If you provide a legal description(s) of the county, section, township and range, then you will get some feedback as to well activity in the area. You really need to know what is going on to be able to make an intelligent decision.
we have also had many offers on ORRI in NM lea CO. i WILL ONLY TELL YOU THIS little under a year ago was offered 150k last week offered almost 1.9 million for the 1 percent just saying hold on to your dreams peace out timmy d.