I received a general letter from an energy company offering to purchase mineral rights I own in Caddo county. A specific dollar amount per net mineral acre was not mentioned. Does anyone have any insight they could share as to what a fair market offer would be, in general?
Honestly, there is no answer to this. Is it producing or not?
Assuming it’s not producing, mineral rights are real estate and it depends on location, location, location. There are certain townships where the value is greater than others.
You will need to provide your legal description as Caddo is a big county with diverse geology.
Two good points. I was going to include the location, but got in a hurry and hit “send” too quickly. The mineral rights of interest here are in Section 17, 7N-9W. Thanks for pointing out the omission.
Hello, there does not appear to be much drilling, spacing or pooling activity in that township over the last 3 years. But, you might contact a trustworthy landman to see what the activity is like.
Thank You! I appreciate your input here.
Always keep in mind that the sale of minerals is potentially a taxable event. You need to know the basis in the minerals to determine if you will owe capital gains taxes.
Also, be careful about warranting title and that you have a physical exchange of the deed for a check.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Thank you very much for those suggestions, that’s helpful!
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