Ranch77 Thanks so much for that explanation of NRA and NMA–I’ve been doing this awhile and no one has ever explained that so clearly! I was able to verify that the numbers on my properties are correct and now I can use your calculations in the future! Thanks so much for a really useful bit of information!
1 Like
Sam I see Aetheon has a permitted location just NW of the Sparks Survey in Robertson County, could that be the reason for the high offer?
What are they actually going to write you a cashier’s check for? You might sell they 1/2 and keep the rest of an undivided interest. Where is this at?
A well(s) on your acreage would have to make roughly $100,000,000.00 to get a $160,000.00 return, assuming you are leased at 3/16ths and its spaced at 1280. When prices per net acre get that high, you almost have to sell, if you take the proceeds and invest it, you will make much more money in the long term.
2 Likes
After years of phone calls from young pseudo landmen “reaching out” to me about my interest in selling minerals I have developed my criteria for discussion. My first question is are there wells on the property or any permits pending. If they do not know then the converation is ended because they are obviously uniformed or not telling the truth. The second thing I want to know if they are connected in any way to the operator/lease owner. A yes answer and conversation is also ended. If they do seem to have some knowledge of the area then I want to talk with them to find out as much as I can. I then ask them to send me an offer by email. In probably 600 calls I have yet to sell and have no regrets.
The people in the mineral buying business are smart financial guys. Very often it is the private equity groups, or their proxies, working off internal lease records and development plans. In other times it is independent mineral buyers working on a tract just as soon as permits are filed.
In general mineral buyers are a by product of today’s industry practices.
Just my humble opinion.
4 Likes
So, you have no intent to sell, instead of a simple no, you ask someone thats simply doing their job questions so that you can tell them no at the end and feel better about yourself after you hang up?
Not saying I won’t sell I just haven’t. I didn’t ask them to call. If they do, I want to discuss everything I can to get information relative to my ownership. I also benefit them many times because I also have information relative to the tracts where I own that could help them in there efforts. I simply qualify who they are and what they are doing before I get in a long discussion.
3 Likes
If you don’t mind sharing, who were the groups offering to buy your minerals?
Vanguard Partners LLC out of Dallas.
Many times I have had offers to lease and the Broker/Landman had the net. mineral acres incorrect. It’s been less and sometimes more! I would be concerned if I get an offer to lease in the mail vs a telephone call.
This topic was automatically closed after 90 days. New replies are no longer allowed.