I was recently contacted with an offer to purchase Mineral Interest in Township 3 South, Range 2 West, U.S.M. section SWNE, SENW. The mineral rights that I own are inherited and this being said, I am new to all of this. I would appreciate any advice on where to start with all of this.
Welcome to the forum. The first question to ask is what do they know that you don’t know and why would they want to buy. Then ask why would I want to sell? Do you know what you own, do you know how many net acres? Do you know what activity is going on in your area and what potential activity might there be? Most offers to buy are from folks that want royalties that exist now or that they think will exist in the near future. If you just inherited, have you filed your name and address in the county clerk’s office. Have you contacted the operators and put any royalties into the heir’s name. Have you checked the state treasurer for unclaimed funds. If you sell, you may have capital gains tax, so that may be a factor. Good for you for getting informed. Look up your area on your state’s oil and gas commission website to get started.
I just received a letter myself from someone wanting to purchase my mineral rights. Considering what little money I have made over the last few years from these mineral right and how much money they’re offering the must be expecting this to be the next Permian Basin
This is a very active area of the Uinta Basin with lots of new horizontals being drilled (mostly by Newfield/EnCana). If you can provide the section number (missing from above) others on here can evaluate the activity on your lands.
Martha always has great advice. In addition to what she said, when you receive an offer, you should figure out who is making the offer. Most of the time, the first offers are from brokers who are simply looking to flip an interest. If you really do want to sell, it is important to make sure you have marketed to the end-user buyers in your area. I am not aware of any well-funded companies actively targeting Duchesne County at the moment, so it might be a broker?
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