Echo is interested in buying my minerals in 26-1s-3w for $6000nma. My lease is from 1957 and only 1/8th royalty. This is the first time to consider selling any minerals and I received a letter of intent. I was mad after reading it… Am I over-reacting or is this letter necessary? Should I sign something like that? Thanks for your help in advance. Laura
Letters of intent are common. The real question to ask is do you need to sell. Echo has a horizontal well planned for that section. Do you want to sell away the royalties for the planned well or any future wells? Echo is trying to buy up acreage in the area. If you do not want to sell, then don’t.
Thank you M Brown. The same question I’ve been asking myself. My age plays a big factor in the decision, that being said I don’t want to be stupid either.
If you have heirs, you might want to hang on. If they make a good well, then the value of the minerals will be set higher for your heirs (family or charity, etc) at your death. If they ever decide to sell, their capital gains tax may be much lower. If you sell now, you may have to pay capital gains that are much higher because your original cost value was much lower.
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Thank you again M Barnes! Very good point I hadn’t thought of. Laura