I own mineral rights on 3.33 acres … township 22 south … range 27 east … N.M.P.M. section 8 in Eddy county … I have been offered 13,000 to purchase … is this a fair deal?
Section 8 is currently somewhat quiet with a few active gas wells operated by Mewbourne & Oxy. However in sections to the north and the south there is a lot of activity and several permits for horizontal wells. The permits are Mewbourne’s which is a company that has been very busy collecting mineral acreage in the county from owners and other operators. This being the case, I would think the offer is low for your acreage and unless you have to sell, I would suggest holding and see how the area continues to develop.
Britt,
Thank you for the information. It was very helpful as I don’t have a clue what acreage is worth. Do you have any idea what a reasonable offer might be for the 3.33 acres if section 8 were to “heat up”?
Thank you for any response
It’s really hard to say as it depends on so many variables including, exact location, what type of wells, to what depths/formations they are drilled, the price of O&G, your lease terms, etc. Our family generally comes from the opinion that you never sell your minerals because in the long run, they have far more potential value than any one sale event-especially once you factor in tax ramifications of a sale. There are many threads in this forum on valuations and leasing vs. selling along with some very informed members that may be able to provide more specific information on estimated valuations of royalty income vs. sale pricing for your specific acreage.
Good luck!
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