My brother and i were just contacted that we own 20 net acres of mineral rights in Borden county, TX. We were offered to sell them and have a week to decide. Can anyone provide advice or recommendations or options?
Section 64, Block 25, H&TC Ry. Co. Survey, Borden County, Texas
I appreciate any advice.
There is no timeframe. You need to understand what you own in your own time, not anyone else’s. Take your time and ask lots of questions. If after you have gathered what you believe is enough information and decide to sell, never hand over a deed without certified funds.
Advice:
- this is likely the worst time in decades to sell mineral interests.
- always gather a handful of legitimate professional buyers to compare their offerings. There are some buyers listed on this site under the Directories link
- figure out what you own prior to entering any conversations on this matter. In a sale, a deed will be prepared, with a legal description of what you own. Are you going to trust the buying party to properly describe what you are selling them?
I would not sell any mineral rights in Borden County. I own some rights there, and have received many offers from buyers. Although royalty payments will decline in the short term due to over supply, they will eventually resume to previous amounts.
Thank you Todd Baker. Do you have recommendations of direction to search and topics? We certainly aren’t looking for “get rich quick” scenarios, we just don’t want to be taken advantage.
This link will open the Texas RRC’s gis map viewer on a producing horizontal well less than one mile from your section.
I would be hesitant to jump on an hour that gives you a 1 week deadline. They’re likely trying to push you to accept a lower offer without opportunity for negotiation. This acreage is definitely outside of the core drilling areas, so the bigger professional mineral buyers will probably pass on making an offer or present an offer that’s well below market value.
Can you share the offer? That will help us figure if it’s a lowball or not. Keep in mind, this is very “fringy” acreage with no recent horiztonal wells drilled nearby. That means two things. 1) The buyer is probably lowballing given the riskiness of the location (no timeframe for drilling/recoup investment). 2) You’re acreage isn’t too desirable and you probably won’t see many offers in this environment where oil is sub-$20. So, if you get a fair offer and want to sell in the near future, it may be a good idea to sell. If you can wait until oil comes back up some, you’d probably be better off.
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