I own mineral right on various parcel of Eddy County NM as part of a trust. Someone has made an offer to buy. I don’t know how much I should sell for. I have the Legal Description of each parcel. Each one looks like a variation of this LEGAL DES SEC TWP RGE Gross Acre INTEREST NMA How to I value this? I am SOOOO green. Thanks Example- How much per acre??
Generally, when there are offers to buy, that party knows a lot more than you do. In Eddy county, they may have pending drilling coming. Most offers that I have received have been based upon the buyer calculating a three-five year payout on the well discounted for the time value of money. Buyers start out low on a offer and see who will bite. They fully intend to make a profit off of me. Our family also inherited minerals. We tend to think more generationally out to 50-75 years, so we hang onto our minerals. New technology is developing new reservoirs all of the time.
If you need to sell, then you might want to consider getting a professional appraiser to give you a value so that you have a starting point in your negotiations. You are at a disadvantage right now, because you don’t have any clue. Look up your areas based upon their descriptions on the New Mexico oil and gas map and see what kind of drilling has already taken place and what new permits exist. Eddy county is one of the hottest counties in the country, so slow down and take your time. Over 42,250 wells and over 3200 new permits.
https://nm-emnrd.maps.arcgis.com/apps/webappviewer/index.html?id=4d017f2306164de29fd2fb9f8f35ca75
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Deciding on the right price to sell your minerals for is not straightforward by any means. Ultimately, it boils down to whether or not selling fits what you are trying to accomplish financially. Once you’ve got that figured out, there are a couple of ways to run down a fair offer or appraisal for your mineral rights.
One option is to gather offers from several trusted buyers to see what the market is willing to pay. If any offers match what you’re aiming for financially, it might be a good idea to consider selling. You will definitely want to find a buyer you can trust; because, unfortunately, there are some shady players out there.