I inherited a percentage of mineral rights along with dozens of relatives. My questions are regarding the difference between selling your mineral rights and just selling your royalties. I understand that if you sell your royalties that means you sell the royalty interest for all production coming from the leased acreage. That means that even if you keep the mineral rights you will never be able to receive any royalties even if it has new wells. So I am wondering why someone would sell just the royalties? In addition, from the research I’ve done concerning mineral rights buyers, they mention that they offer from 20 to 75 times your monthly royalty income. There are 5 active oil wells producing on this acreage. I understand this method of valuation on the oil wells but what about the mineral rights? Is there no value on them in this situation? If you sell your mineral rights and your royalty interests do they use this factor in the value of the mineral rights in their 20-75 times offer? I realize that they are mostly valuating the current activity on the acreage and less on what future production could be, the 1280 spacing that is being done now opens up a lot more opportunities to have additional oil revenues from neighboring wells. Therefore there is a lot of possible additional income that could be realized through ownership of the mineral rights. The way I see it is that if they purchase just the royalty interest on the current oil wells that are being paid that there has to be significance in the offer in regards to the mineral rights. If their ownership of the royalty interest means that they receive all new oil production royalties in the future, than they don’t need to purchase the mineral rights. However, shouldn’t there be consideration in their offer reflecting this additional monetary benefit?
I dont know if I am making any sense but if anyone has any comments or can help me understand this ,it is very confusing to me. thank you.
Keep in mind that you can sell anything you own. Royalty rights, portions of royalty rights, mineral rights with reservations and all mineral rights. The key factor for the seller's decision is a function of what your expectations are and to use that to determine the opportunity cost you may suffer for holding the minerals. The buyers of mineral rights do a similar evaluation understanding their risk adversity and the risk evaluated potential they would rather have than the cash. They may make offers in the range you talk about if an offer falls within that range it is pure coincidence. If you desire to sell at a fair price rather than hold for emotional reasons, you should get your assets evaluated by a professional then you will know what and how much of your mineral rights you want to sell and know a fair price range for your particular assets.
I evaluate and sell mineral rights for clients often and can tell you that the guidelines you "heard about" are not reliable for most parcels.
I desire to sell at a fair price and have no emotional attachment to the acres I am looking to sell now. These acres represent a very mimimal percentage of my overall assets in North Dakota. I live in Los Angeles so mostly interested in CASH. I am very interested in your comments about guidelines and I agree that I need a professional to evaluate. I am attempting to research as much as I can but of course r ealize that before any deal is made I would have to consult with a professional as you said or a lawyer. Since i am at the stage that I am looking for this service ,I would very much like to discuss further with you.
For the first 23 years of my career in the oil and gas industry, I worked for the oil and gas companies. However, for the past 6 years, I have worked with landowners to assist them with their problems with the oil and gas companies, either as an oil and gas expert in litigation matters with their attorney, or personally handling their matters with their royalty payments. If you visit my website, www.iliosresources.com, you will find out alot about me and also visit www.allexperts.com and see what others have to say.
If you would like for me to evaluate your minerals and seek the best offer for you, I would be happy to do so.
Best of luck - in handling this very complicated matter.
I am writing on behalf of my mother who sold some inherited mineral rights last year.
For tax reasons, she needs to know how to find out what the mineral rights were worth when she inherited them in 1990. Anyone know where she can get this information... quickly?
It looks like from the website your directing sellers to you to sell. The bottom line is the value of something is what someone is willing to pay for it not evaluations and you can go to these people that are supposedly only here to help (right look at their posting) and they can tell you this and that and make offers or whatever, just get several offers before you sell and don't trust just anyone offering so called help for nothing. By the way, it's not as complicated as they make it seem. Consider putting it on this web site under the listings on the home page and take offers, doesn't mean you have to sell.
Maybe I should include my website or that I also purchase mineral rights as long as we are advertising. I can beat anyone's offer on minerals.
Minerals rights buyer, contact me before you sell.
It looks like from thhe website your directing sellers to you to sell. The bottom line is the value of something is what someone is willing to pay for it not evaluations and you can go to these people that are supposedly only here to help (right look at their posting) and they can tell you this and that and make offers or whatever, just get several offers before you sell and don't trust just anyone offering so called help for nothing. By the way, it's not as complicated as they make it seem. Consider putting it on this web site under the listings on the home page and take offers, doesn't mean you have to sell.
Maybe I should include my website or that I also purchase mineral rights as long as we are advertising. I can beat anyone's offer on minerals.
Minerals rights buyer, contact me before you sell.
If you want to contact anyone on this forum privately, click on their picture or icon to go to their page. Click on the send message symbol and if you are not friends you can go through the process of sending a friend request. You can send a friend request with a brief message, probably long enough to get your contact information to them and not have to wait for them to accept your friend request so you can give your contact info, might speed things up. I hope this helps. I agree with Joe that you need offers, that what someone will pay is the best way to set value. Even if you had a high appraisal you probably wouldn't be able to sell for that because people are only buying to make a profit. I don't buy minerals but if I did I would not buy some for what I thought they would be worth, tie up my money for a decade or more just to break even sometime down the road. There needs to be good potential for profit to sell reasonably quickly, or at all. Just my opinion. Good luck whatever you do.
dakotaboyla said:
how do I contact you?
Mineral Joe said:
It looks like from thhe website your directing sellers to you to sell. The bottom line is the value of something is what someone is willing to pay for it not evaluations and you can go to these people that are supposedly only here to help (right look at their posting) and they can tell you this and that and make offers or whatever, just get several offers before you sell and don't trust just anyone offering so called help for nothing. By the way, it's not as complicated as they make it seem. Consider putting it on this web site under the listings on the home page and take offers, doesn't mean you have to sell.
Maybe I should include my website or that I also purchase mineral rights as long as we are advertising. I can beat anyone's offer on minerals.
Minerals rights buyer, contact me before you sell.
rw is correct and all the appraisals in the world won't get you a better price and if you pay for an appraisal or evaluation you'll probably make a lot less. If someone really wanted to help they'd do it for you on here for free rather show their website or other advertising they do after their name. They could contact you behind the curtain, at least I thought we were not supposed to advertise in a discussion, beware of wolves in sheep's clothing. I am certain everyone here would love to see how they do their evaluations and aren't they here to help people, or are they really wanting something for themselves?
I have mineral rights and 1/4 royalties on 2.5 acres in Howard county tx at W/2 section 41 block 31 T1N and am looking to find the worth of the rights i currently am leasing to grenadier energy partners llc have a 3yr lease with a 2 yr extention option they hve not drilled yet i am wanting to know if it would be wise to sell my rights possibly keep 1 acre and sell 1.5 acres can u plz help me??