I received a letter in the mail from a mineral group interested in evaluating my land for minerals, with interest in buying. I am new to this and do not know if i even own the mineral rights to my land.
How do I find this information out? Could this be a scam? Any advice would be greatly appreciated. The letter was pretty generic, and I believe it might have been sent to many land owners in Anderson county.
Thank you.
Where are your mineral interests located in Anderson County? Do you know the survey name and abstract number?
@Texan1 Literally everyday across America, mineral owners receive direct mail letters from mineral buyers doing what they do… seeking to buy minerals at a price that suits them. Rightly or wrongly, (mostly rightly) they are buying at prices that yield them an IRR (internal rate of return) of 20% to 500%.
The specificity of detail contained in these letters is all over the map. Some know a lot about your minerals, some are just fishing to see who responds. Of course those who respond are those likely in need of money, thus more likely are sellers. Your basic perspective should be that of an owner who’s uninterested in getting fleeced. For starters, that means knowing exactly what it is that you own.
Thank you. I dont know if i own any mineral rights. It doesnt say in my deed. I am assuming i would go to the tax office to see if there are any mineral rights to the land?
Here is copy of my advice to another poster (“Please Help Me” 11/17/22). We inherited surface & mineral acres and were clueless, began receiving low-ball offers. First, we determined our location & areal size. Secondly, we downloaded the oil & gas production of “offset” wells, drilled within a few miles in the last 3-4 years. Your own section may have producing wells, our section was virgin. We estimated royalties and well profitability to applying recent prices to analogue offset wells’ O&G volume. Operators drill if they can break even (“payback”) in 6-12 months after paying out 25% royalties & severance tax. Horizontal wells (10,000’ or 2 miles) cost approx. $7-$9 million.
It is easy evaluating Texas offset wells (est. royalties) using the state’s online GIS map. Landmen have advanced software. Royalty investors try to buy cheap and know more than you, but I gleaned some useful info from them by asking numerous questions, sometimes calling them back with additional questions even when I knew we weren’t selling. Good luck. If you have spare time it may be fun learning your asset, which geologic formations are profitable, your operator’s long term plan for your pooled unit, etc.
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