I have recently inherited my dad’s oil and gas wells shares. It is split between several family members but it looks like I have 15 NMA. 3 family members have already sold there shares all through the same company. They have reached out to purchase my shares and we have an offer. I’m wondering how I find out how much there really worth… if I should get multiple offers or just go with what the rest of the family Did? It is in weld county 1N-68w section 24. If that helps…i really don’t know much about this and need help on where to go to get more info. I’m thinking there are multiple wells because we get checks from multiple energy companies every few months
Christina,
It may be difficult to sell your part of you Dad's shares at any price. Whenever you get a check it may remind you of your relationship. However, if you are serious about selling and are able to walk away from the inheritance and never look back, It is time for you to determine what that price is on your terms not the terms offered. For example if the offerer quoted the 15 NMA figure, and you can walk away with $120,000 and never look back, make the counter offer and demand it be done through a purchase and sale agreement with payment by a certain date in full and in exchange for a signed Mineral and Royalty Deed on the day your are paid in full. The Offerer can then find an interested buyer and check your title. The buyer shouldn't need more than 3 calendar weeks to check title once you approve a Purchase and Sale agreement and form of mineral deed.
There is a lot more to it than the above but you get the idea. If your sibling who sold have been paid in full, that is a good recommendation for a company to deal with. Taking bids creates a quagmire of complicated offer sheets and you will be comparing apples and oranges and still won't get what you want and deserve.
At this point only you can determine what is fair to you. Set you price and stick to it or enjoy the gift from you Dad. Buyers don't care. They just want to churn unemotional dollars at the margin.
Gary L Hutchinson
Minerals Managment
I wish the offer was for 120,000, not even close to that. That is why I’m trying to find out if we are getting low balled. The family members that sold didn’t really look into it at all they just saw a potential buyer and sold. That is why I’m doing some digging to find out how much the going rate is for that area. I’m not attached to these wells in terms of closeness to my father and would prefer to sell rather then keep. Any suggestions on finding out if the offer is a good one or not?