I have an offer for my school land in Culberson County. What is the best way to value the land and also find out what a reasonable offer would be?
How Many acres? Is it currently leased/producing? Who is operator if it’s leased or producing? This will all play a factor in what its valued at. Call me anytime at my office 979-743-4602…Ask for Andrew
Where is your school land? I have PSL too.
It depends entirely on where the land is located. Note that typically mail offers can be pretty low. I'd try to get offers from multiple mineral buyers, such as the forum sponsors. That will give you a good idea of what is "market" for the minerals to know if your offer is a good deal or not.
I may have selected the wrong box on my profile. I have the mineral rights in two different sections. One is 50 acres, the other is 53 acres, I believe. I’ll post the land description when I get home tonight.
50 acres in BLK 59 W/2 Sec 28
52 acres in BLK 58 N/2 Sec 34
Both Cimarex and Capitan have several horizontal permits in both the areas you describe - I haven't dug into well results yet.
I won't comment on prices for minerals - I don't have the background for this area. But remember the tax implications of selling any minerals when you are considering this option
I'd be happy to take a look at your minerals and let you know what is a fair price. Please feel free to email me at drontal@overlandoil.com.
It is unlikely a mineral buyer will pay you what the minerals are worth assuming you do eventually end up with a producing well. The present value of a royalty stream would indicate values anywhere from $25,000-70,000/acre, but most mineral buyers out there are offering $13,000/acre or less, some way less. That is because they are taking the risk you have good title, that prices don’t crash, and that a well gets drilled.
My suggestion is don’t sell minerals unless: 1) you need the money; or 2) you need to diversify your assets away from minerals.