Hello everybody. I stumbled across this form and love all the information on it. Here is my question. I have received an offer to purchase my deceased fathers mineral interest in Winkler county Texas. It is sections five and eight block 27. The interest percent is .0001285 and the net royalty acres is 1.3158. The offer is $13,158 and I’m just wondering if that sounds like a good offer The mineral interest is actually half of what my fathers interest was as my sister has the other half and she doesn’t want to sell and I’m just undecided at this point Would love to get everybody’s feedback on this. Thanks so much.
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The operator is Permian Resources, but looks like WPX (Devon) has drilled 14-20 wells per section just south of this which would mean 3-4x that offer just as a starting point. There are no permits as of yet however so you may need to wait to see those numbers.
Yes I spoke to a woman at Permain and she was not aware of any plans to drill however that wasn’t to say it might not happen in the next 10-15 years. The group that wants to buy the rights said they knew of potential drilling in 3 to 5 years with revenue showing up in years 6-7 but production slowing dramatically after 2 years. I wonder how they would know that and not Permian unless they are talking about WPX. I am brand new to all of this and just not sure of what I want to do. I’ll be in my mid to late 70s 10-15 years from now and don’t really know what kind of royalties I would even be getting.
For undeveloped acreage like that, valuations have a huge range because development and timing assumptions are uncertain. If you want to explore a sale, you are best to field a couple bids to make a market between buyers. I think $12,500/net royalty acre would be fair. Make sure you are familiar with the title before you sell so you don’t cut yourself short.
Permian Resources is in the process of transferring ownership to my sister & I. My dad only had paperwork from 2011- 2014 but I don’t see a title. His property description on that says it is Haley Unit Sec 5 however the company with the offer refers to Haley- Garland Allocation 8 oil well. It looks like my dad received very small royalty checks and Permian says they have a little over $1000 in suspense since Feb 2021. To be honest I don’t have a clue who else to get a bid from and how to get the title.
To figure out the title you’d need to either run it in the courthouse, or pay a landman to do it for you. The land bill would eat up a good portion of the acreage’s value, but you’d at least know what you owned. It looks like SGC Royalties and Sitio Permian are the active buyers in these sections for 2023.
Thank you Smith Ranch for this information.
Just my 2 cents but if your leaning towards selling the buyer will normally set a closing date 30 days or so in the future. They will then run the title “at their expense” and determine your exact ownership and then make the necessary adjustments to the original offer if needed.
A friend in Glasscock County was getting offers on about 11 acres and within a few weeks another offer came in to lease the minerals. No sure if they sold or leased but you never know whats going to happen. As ive shared in another post i know 1st hand of a large seismic shoot being permitted in blk 26.
Thanks Joe, I am leaning towards selling however I’d like to get some other bids. They have told me closing would be 30 days from the date I return the signed papers to them and yes they are doing the due diligence ‘at their cost’.
If you sell get the entire amount they offer you at the SAME time you sign! Let those crooks do the title FIRST.
Did you end up selling your minerals?
cmh1220, Thank you for reaching back out and for the info. If you have not already sold, do you have any other questions or something we could help you with?
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