We have received offers to buy our minerals. A request was made to review recent revenue statements in order to have the producing income properly evaluated.
Is this a common and necessary request?
We have no immediate plans to sell however we are curious as to what the offer might be.
Thanks-
It is common, but would you hand over your bank statements to some random person you do not know? This is similar. If it is a legitimate offer, then they already know what they are going to offer. I would not hand over my information. Just ask them what they are offering per net royalty acre.
In general, when I get an offer, the offer is for a discounted estimate of the royalties for producing wells. They do not want to tell me that there might be pending drilling. If you want a general estimate, take your oil revenue from last year x four and your gas revenue x seven.
If the offer was out of the blue, then there might be pending drilling. Many companies try to buy ahead of the bit. If you want to share the township and range, then we can check for pending activity.
Thank you for your quick reply.
Section 22 3-N 4-W
Thanks Kindly
Perhaps this is what is sparking buying interest.
Thanks for your time!
I share none of that information with anyone. My tax preparer only gets a 1099. I have had oil companies contact me, as I am sure a lot of people here have, and if they are interested they can do the footwork. I am not a professional but agree that when there is interest shown in buying it is usually because they know something is about to happen.
Keep in mind capital gains implications if you sell. This post is not legal, investment or tax advice, it is for discussion purposes only. Reading or responding to this post does not create an attorney-client relationship. *
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