A couple of months ago offers we’re rolling in but since the drastic drop in oil prices those offers are ridiculously offensive. Are we looking at a market of buyers trying to accumulate minerals in order to flip later? Anyone have a reputable broker suggestion that is working in your best interest OR do we hang tight in hopes of things improving in the near future?
Personally, I would not sell at the downturn. Others may have different opinions.
the answer is with you, and no one else…do you need money now>? what is the reason for selling? there is no subjective opinions of offers…the market moves up and down…and we are going to be down for quite some time…liquidity in ogms is fleeting…here yesterday, gone today…
The way I look at it is: They aren’t going to give you a good price! If they did THEY wouldn’t be out making these offers. After all that’s how they make money: Is to buy LOW and sit back and receive the royalties. The way I figure it I may as well sit back and do the same thing. Now IF you need the money --> NOW!<— you may want to consider the offers…
It is a tough call no question but depends on each individual’s financial picture and your time horizon. Also you do not have to sell all, just a portion if so inclined.
Here is a good article that may give some insight:
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My comments are relatively similar to other people on this page. The decision to sell or not sell is really a personal decision, not a business decision. Has one lost their job? Do they have a sick family member that needs medical attention that needs to be paid for? Does one own just one piece of property that the owner believes is more trouble than value? If so, then that individual may wish to sell. If they fall into one of these categories, then one probably shouldn’t sell just because the price of oil is down.
I would hang tight and nit sell at reduced prices, if you can.
My Dad was in the oil business for 50 years before his death. His statement to me about the Industry’s ups and downs was, “This too shall pass.”
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There is a way to get some money now without having to sell forever, it’s called a term royalty agreement.
Those are out there, but I would caution anyone thinking about them to get an attorney to review the wording as some are advertised that way, but the wording can be complicated and not do what the mineral owner thought it would do. Others are worded just fine. Get legal help to make sure you are not giving away more than you thought.
Two things.
- Tap the brakes on selling now. This downturn is temporary, selling is permanent. And if you do decide to sell…
- Unless you are calibrated on minerals, DONT DO THIS BY YOURSELF. Get hooked up with a mineral broker or O&G atty. There are many pitfalls in this , none are in your favor!
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