Selling interest

Texas Mineral Rights Gonzales County, TX
1

Hi,

I continue to receive offers to sell all or a portion of our interest in Gonzales Co. They are offering $9600/acre and are using the logic that it will basically be useless next year to to the price and OPEC not reducing output. Is this just a scare tactic or is there validity to selling now. We don't need the cash today but don't want to lose an opportunity.

Any advice would be appreciated!

2

Phil - sounds like a scare tactic to me. I would argue that supply and demand are more likely to rebalance next year causing a rebound in price versus the Saudis flooding the market more and prices dropping further. I found your tract in an older post and it looks like you already have several wells producing. There will always be buyers and if prices recover you'll see those offers go up.