I own 5 acres in Loving County Texas Block 55-2 Section 48 and was wondering how much mineral rights are worth right now? Getting calls from interested buyers.
If your receiving unsolicited offers they know more then you do. You need the determine immediate area activity and should probably obtain a professional current market appraisal before making any decision.
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Hi Cara,
Thank you for the suggestion.
Liana
That was our experience. I didn’t (don’t) know about mineral rights, but I have been in third world markets enough times to know that whatever an unsolicited offer is made, it is worth much, much more. We ended getting a lease for 6 times more than they were offering to buy our rights. If landmen are sniffing around, and (as was our case) going all over the country tracking down heirs, you can bet the rights are worth a lot more than they were offering. My cousin (an attorney) knew nothing about oil, but worked on finding us an knowledgeable Texas oil attorney. Well worth the price.
Working on assumption your acres are leased.
They are probably worth about $9-10k/acre times your royalty rate divided by 12.5%. So if you have 5 acres leased at 25%, then your 5 mineral acres are $90-100k. In my opinion. I have no idea what you were offered.
The 3 rigs on this map are Shell’s rigs in the Delaware Basin. Yellow Diamonds are wells permitted in the last 6 months. Yellow square is Section 48. Shell is the turtle, they will get wells drilled everywhere eventually, but eventually may take 40 years. That kind of uncertainty pretty much puts a cap on your value.
And yeah, Loving County is a third world market. No doubt.
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