My family owns 40 acres in Reeves County and are being offered $9,000-$10,000 per acre to purchase the land. Any idea if these offers are fair?
Reeves is a very large county. Values all depend on the exact location of your land; whether you own surface as well as minerals; whether the minerals are subject to an NPRI; whether minerals are under lease and if so, the terms; whether there are producing wells on the acreage.
Alton, Best offers are made by sophisticated buyers looking at the future potential of horizontal well drilling. As with most minerals, the location relative to proven production demands the best prices but the seller needs to know the true value to the industry in order to command a fair price. I've seen deals close at below your offer and twice as much as your offer depending on the location and knowledge of the owner.
As the surface owner, you are also entitled to a premium if the surface is also sold. Transaction procedures are especially important in a hot area like Reeves. Get some help if you haven't sold minerals before.
Gary L Hutchinson
Minerals Managment