We have recently received an offer to buy our mineral rights in Divide county and where wondering how to find other interested parties to get some other offers. Thanks
If you hit the “Directories” button at the top of your screen and select Mineral Services, you will see a few companies that advertise on the forum.
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Also wise to see what pending activity there might be. Offer to buy usually have an underlying reason.
It looks like Lynx, Koda, Phoenix, and TRP have recently made acquisitions. I recently received a letter from Phoenix and Lynx for some of my Divide and Williams county acreage. I try to work with smaller land shops vs the operators, but that’s just my 2 cents.
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We have mineral rights in Township 161 North of Range 100 West of the Fifth P.M. Section 5 This has a producing well We have rec’d a purchase offer of $1,550 per acre. Is that the going rate in that area?
Koda is leasing in the section. Hunt is permitting multi-section wells in the southern part of the township. You have a horizontal well already with about a third of its life left. Also have room for infill wells. Probably a starting offer.
In general, first offers are for the value of the current wells for a certain number of years (3-5) at a discounted rate for the time value of money, Some companies pay for upside, but many do not because that is what they intend to make their profit on. You can try negotiating.
You can get bids from the current companies offering or go to auction sites. Best to get multiple bids to determine the best offer. For a general appraisal, you can find Pecan Tree in the Directories tab above. The offers are your gauge for what is “competitive” in today’s market. As for “fair”, my attorney said that “fair” is what a willing and informed seller under no compulsion to sell and a willing and informed buyer under no compulsion to buy agree to. Buyers are usually much more informed than sellers. Remember that if you sell, you may end up with a capital gain tax which sellers rarely mention, so keep that in mind.
If you already have an offer the fastest way to know if it’s competitive is to get it in front of multiple buyers at once.
That’s usually where pricing moves the most especially in areas like Divide County where groups are actively acquiring.