In the past two weeks I have received 3 offers to purchase...which indicate Reeves County is every bit as active as media reports suggest. While the offers didn't hit my $$$ button, at $12,000 - $15,000 per nma, they are getting my attention for leased but non-producing land in Blk 58. I assume other mineral owners are getting similar letters. Has anyone actually decided to take the money and run by selling? It can be tempting. Just curious.
Don't sell is my advice. We have received offers for close to 26,000 pnma. For 21 acres in blk. 52. Definitely eye opening but the property was just permitted for three wells.
People are getting 10K acre just to LEASE. Don't sell just yet.
Wow...I didn't get close to the $10K number 18 months ago. Hope that number means prices pnma are also increasing. Thanks for your suggestion.
Location, location, location. Many people are selling. There are hundreds of companies that are buying minerals throughout. There are several Block 58s in Reeves County, and location would dictate what is a fair offer. If it is either one of the Block 58s located in the Alpine High region, that is probably a decent offer. Production is unproven and marginal compared to other areas. Same with lease offers. Generally, the closer you are to the river, the better. That said, there are some faults throughout Reeves that kill the value and production potential for mineral owners. It's not an apples to apples game.
I couldn't agree more with this statement. People try to say that "oh I got such and such amount, don't do it" but they don't seem to relay that its a completely separate area. So then it causes mineral owners to get ridiculous expectations stuck in their head, and they end up missing out on great offers!
This forum is a great resource; however, I have also had this forum torpedo several deals I was working when the lessor was given awful or inaccurate advice. Location and quality of title play a tremendous role in valuation.
Joe- the fact that you have 3 offers from multiple companies means you have something they want. That being said, you NEVER take the first offer they present. No company will ever send their max amount in a random mailout. They usually have a range- say 10-15K. There is always room to negotiate and when there are 3 companies bidding, there is even more room. That being said, things can change very quickly in this business and prices could drop overnight. It is always a gamble.
Thanks to all for their input. To say I am preceding cautiously is an understatement.
We have a share in block 48 in pecos county. This is equal to 15 net mineral acres. The offers recently have gone from $12000 to $23,000 pma. I have 2 contracts to sell half of my ownership for $165,000 and $180,000. Last April top offer was $137,000 for 100% of our share. It has tripled from last year so we are really tempted. I will be making a decision within 30 days once I run this whole situation by a few friends in the OG field.
It’s like a gold rush, and a few good advisors have said to hold a bit longer…