So I own about 1.6667 acres and have been approached twice in the last week to purchase the land @ $30,000 NMA from one company and haven’t got a quote from the second. Money is tight I have other family members with land and would hate to sell and have them “strike it rich” as my wife said.
Is this a fair price the paperwork said $60,000 but I know that can change with due diligence. the money wouldn’t be life-changing but it would be situation-changing.
Which section is it in 55T5? Is it leased, if so what is the royalty rate? I’m a little confused…offered $30k pnma but paperwork said $60k?
yes was a little confused by this as well (get it…well?)
yes is $30,000 NMA but I have 1.6666 acres so that would be $50,010 but the paperwork said $60k < I do have it leased to espuela royalty rate is 25% I believe
Something is not adding up. What section do you own in? Is the 1.6666 acres, net mineral acres or net royalty acres? It would make since one price is for NMA & one is for NRA. If you tell me the NMA amount and your lease royalty (you said 25%) I’ll see if I can figure it out. If you have your decimal interest that would be helpful too.
It looks like you own in Sec 10. Royalty rate 25%. Mewbourne is currently drilling wells there in the W2 of Sec 10 and 15. Here is a map/info:
What does this mean in laymen’s terms? You in theory have 1.66nma @ 25% royalty = 3.333 Net Royalty Acres. With these 4 wells drilled I would guess that someone should be willing to pay you over $20k/NRA. So $67k+. I would not sell for $30k per NMA (or $15k per NRA). But that is me.
It is 1.666 NMA. Nobody is going to get rich of 1.666NMA, it’s not big enough, but IMO you should try to maximize your value if interested in selling. How does one do that? Hmmm… Not sure. Ask for more from the people that contacted you for starters. Look online for mineral buyers or people here who buy minerals. Maybe just posting here will get you contacted. Call Mewbourne and ask to talk to their land department.
The fact that it is so small might dissuade some people. Good luck.
I still don’t know how we get from 30,000 pna to $60k but people have typos in things ALL the time. So that may be the simplest answer.
How did you determine that you think he owns in Section 10? What is that based on?
i am in section 10, spoke with with the potential buyer and yes 60k was a typo
Is this section mineral classified?
Enacted in 1919, the Relinquishment Act, as interpreted by the Courts, reserves all minerals to the State in those lands sold with a mineral classification between September 1, 1895 and June 29, 1931. Under the Relinquishment Act the, “owner of the soil”, also commonly known as the surface owner, acts as the agent for the State of Texas in negotiating and executing oil and gas leases on Relinquishment Act Lands (RAL). The State surrenders to the surface owner one-half (1⁄2) of any bonus, rental and royalty as compensation for acting as its agent, and in lieu of surface damages.
This might explain the $60,000 & $30,000/NMA numbers.
Yes, it’s mineral classified. People offering should net that out to him. Another reason to use NRA.
He gave his name + there is a lease + witchcraft = Section 10!
I’d listen to @NMoilboy here. He’s got a lot of insight in this area. To me, $15k to $20k per NRA sounds high with these Waha natural gas prices. NM Oil knows his stuff and future potential of it well.
If you are apprehensive about selling but money is tight, you might want to consider getting a loan against your mineral rights.
Did you get this info from the TRCC website or do you have your own software
Permit plat from TRRC. Map from Enverus (own software)
The Waha comment above is a good one IMO. This is very gassy and gas pricing stinks right now. But it’s my impression that mineral buyers love them some DUCs, so this would probably trade pretty hot per nra anyhow. Could be wrong
Never! worse than selling.
Question. I also leased with them in the last month or so. Did you have issues getting your bonus payment?
you sir are too funny love your wit and enjoy your post.
The terms I’ve seen used in a “Mineral Loan” deal contain a terrible (for the mineral owner) clause.
The clause I am referring to is one that provides a Right of First Refusal (ROFR) to the Lender stating that the mineral interest from that point on is encumbered with the obligation to let the Lender have the “Right of First Refusal” to purchase the minerals. This notice will be filed into the public record, thus observable by everyone from now on. In short, your minerals are now far less desirable by the open market because would be buyers know that their chance at a successful deal are quite slim.