I have an elderly client (age 94) who has received an offer from Bridgepoint to purchase mineral rights that she owns (she doesn't particularly need the money and is more thinking of simplifying her affairs). The offer is $8,500/acre. She has received royalties on her interests (Continental Resources) over the years but they have been considerably less than $1,000 annually. I would like to get some sense of whether the Bridgepoint offer is reasonable. Any input would be great appreciated.
Is she getting royalties on this well ?
I have gotten offers as high as 12,000 in the same section. If she has heirs that she is fond of, I would hang on to the MR.
Thomas, Continental is drilling a multi-unit well with section 5-2N/4W and your client's section 32-3N/4W, this will be the second well for both sections. Her interest must be pretty small if she is only averaging $1000 per year. It will be worth more in the long run but it would depend on whether the income would be used by her now or left to her estate. As a person 30 years her junior I would not sell.