Found out i inherited royalty rights SW/4 of section 5, block 36 t-5 in Dawson county. A company contacted me and other family members to purchase those rights. Everybody sold their rights but me. The guy called me back and raised his offer, saying i was the only one that is left for them to have all that acreage. First offer $1700 acre, second offer $2000 acre. I have 1.18 acre. Is this normal? Wondering if they know something i dont. I dont live anywhere near there and am new to this.
I’m assuming it’s the box that is where you have it marked section 5. I wonder with the wells to the south and north if they will drill in between? Is it normal for people to buy out royalties speculating on future drilling?
Look at the cluster of 3 wells about 1.5 miles northwest of your minerals and search for posts about CGS Operating in this forum.
It is very common to buy up royalties for their own value and also for future potential drilling. Many buying companies buy up bulk tracts of minerals and then either package them and sell them again (making a profit) or keeping them for themselves.
Thanks to those that responded. Still wavering on what to do.
At the top of the page in the horizontal blue bar click on “Directories” and click on “Mineral Services” from the drop down menu. There are mineral valuation and mineral buying companies. Contact them.
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I would be patient if you do not need the money now. There is some horizontal development to the South that may work itself your way.
I’m in no hurry. Don’t need the money. This guy just keeps trying to get me to sell. I just wonder if he knows something.
In terms of what other guy knows, I’d bet that dude knows that he gets a few hundred bucks an acre if you do sell. And he’s calling or mailing a zillion folks, hustling for that cash. And that is the extent of it. IMO there ain’t a lot of deep thought on the mineral buying side, particularly on this scale.
In the end you have 1.2 acres. On the margins of play (for now? forever?). Just to put things in perspective. If you don’t need the money (which I totally get) then there is almost no chance that this is ever going to be the amount of money that you DO need. Nobody knows anything that makes it worth 10x (or more) what is being offered.
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He does think he knows something that you do not know. Time is on your side since you own the minerals and do not need the money. I had owned 4.5 acres in Ward Co, for more than 30 years before someone made the first lease offer for $2500 and a 1/4, then the next was $12000 and a 1/4 2 years later. The last property I sold was 30 years ago. I have made a practice to buy and hold, be patient on all lease offers because they generally go up, and always do your research. Good luck to you Ida.
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