I have about 70 net mineral acres in Upton County spread out over 40 sections or so. With a few net mineral acres spilling over into Reagan County. I've been approached by a company to pay $8,000-10,000 per net mineral acre. This seems pretty high. Does this seem suspicious to anyone else? Does anyone know what others are offering?
Are your minerals leased as of now? Is there production? Do you have an attorney? Has s/he reviewed the written offer? I would be suspicious that the company wanting to buy your minerals for $8-10K/acre has a good idea the minerals are worth multiples of that. Thank you for sharing your good news. This might be an interesting interview for you to consider http://www.capleroyalty.com/capleroyaltyinterview.mp3
Most is leased, and the income is "ok", but nothing spectacular. about 10 NMA were leased about 6 months ago, but nothing has been drilled.
unless your child is dying and you need the money for him her to live, or if you are starving to death, NEVER EVER sale you rights!!
Blake,
No thank you I have plenty already, I have them all leased out and have oil wells paying me a every month, in the last 8 years I have leased just one of my sections 3 times, for 6 figures and they still have not drilled a drop of oil, if I would have sold them, I have had many offers, I would have made a nice big check ONE time and that is it, when my kids are 45 they are 11,15 now, and oil is 200 dollars my family will making a nice chunk of change, if I sold,again ONE check!
Blake Bergstrom said:Willard,
Would you like to buy some mineral rights? I have plenty for sale in the area cheaper than that.
Binary,
I just sold some near there for $7k/ac, so that doesn't sound crazy.
Blake Bergstrom, If you don't mind elaborating, what variables did you weigh in determining that the purchase price was acceptable? Do you have any feel if the buyer was acting on behalf of an oil company?
Blake Bergstrom said:
Willard,
Would you like to buy some mineral rights? I have plenty for sale in the area cheaper than that.
Binary,
I just sold some near there for $7k/ac, so that doesn't sound crazy.
Maybe. I worry there are way too many alternatives being pursued to go all in on oil remaining transport king for 30 years. A section of land at $7000/acre would mean a several million dollar payday which could be conservatively invested.
Willard rogers said:
Blake,
No thank you I have plenty already, I have them all leased out and have oil wells paying me a every month, in the last 8 years I have leased just one of my sections 3 times, for 6 figures and they still have not drilled a drop of oil, if I would have sold them, I have had many offers, I would have made a nice big check ONE time and that is it, when my kids are 45 they are 11,15 now, and oil is 200 dollars my family will making a nice chunk of change, if I sold,again ONE check!
Blake Bergstrom said:Willard,Would you like to buy some mineral rights? I have plenty for sale in the area cheaper than that.
Binary,
I just sold some near there for $7k/ac, so that doesn't sound crazy.
Blake,
Agreed completely! The "NEVER EVER sale you rights" argument is straight lunacy. I, as well, just sold a lot of the mineral rights that I owned in September. I might be able to get half of what I did then for them now. I might agree with an argument to never sell your rights until you (or someone you've hired) has done due diligence, but to say never ever sell your rights is ignorant. That's the same thing as saying never ever sell your stock in Apple, or never ever sell a rental property that you own - they might go up in value or they might pay rentals or dividends. Of course it might make sense to sell either or both at the right time for the right amount!
My advice to Binary Oil is to do your due diligence (which it appears you are currently doing) and make the most informed decision you can with the information you come up with.
Blake Bergstrom said:
Willard,
Would you like to buy some mineral rights? I have plenty for sale in the area cheaper than that.
Binary,
I just sold some near there for $7k/ac, so that doesn't sound crazy.