More ROYALTIES TO SELL IN ANDREWS COUNTY

Texas Mineral Rights Andrews County, TX
1

I have a small interest in the fullerton-clearfork unit, lease 1770.

For 20 years I've been throwing away those offers for $30-40,000.

Then last month an offer came in for $!40,000, and this made me wonder if something has changed. I know XTO got some permits for new wells last fall. The offer was over by the time I got in touch with the guy, and he didn't really tell me anything. So this month an offer comes in from Oaktree Minerals for $258,000.

I am leaning toward selling, if it turns out to be a genuine offer and not just some marketing puffery. They haven't responded back when I've asked for more info.

I started asking around and was referred here. My questions include, are these guys legit?

Is it a serious offer? Will they stick to the number in their letter, or try to wiggle out? I'm aware the letter, legally, doesn't bind them, because of the usual weasel-wording small print, but I don't know what the customs and practices are. Next, for me, that's enough money. But how do I find out if I'm leaving money on the table? What does an appraisal cost?

Is an appraiser going to do more than look at my monthly check and multiply by 72 or whatever factor? My window to decide is short, and I don't want to miss the boat, if it's not just a mirage. I am not adverse to higher offers, and can provide details on request.

2

Robbin,

That is a big jump in the offers. You mentioned that your window to decide is short. I assume that is based on conditions described in the offer letter? If a mineral buyer wants your property this week, they'll want your property next week too, so I think taking your time is important.

I'd recommend getting competing offers. Unsolicited purchase offers often do not reflect the actual value of the minerals. I'd also recommend that you have someone evaluate the offer letter and any other instruments you've received to make sure it isn't a bait and switch.

As for a mineral appraiser, the monthly check is one component that they would look at, but they would also look at the future development prospects based on what has been proven in the area.

Best of luck!

3

Robbin, have you google'd the company's name? Check them out.

4

Finally got them on the phone and it looks like the letter was bogus, what they are describing as an honest mistake. So nevermind everybody, thanks anyway

5

I got a letter from them, also…

6

I sent them a letter saying "I accept your offer", but suspect they won't honor it.