I just got an offer to lease a mineral classified section near the I-10 for $2,000/NMA. Sounds pretty good to me! We had another offer for the same section but it was only $1,500/NMA.
Has anyone been receiving offers over $2,000/NMA? I'm curious to know. I could take the time to ask companies with operations nearby if they are interested, but don't want to waste my time if there's no chance for them to offer more than the offer I already got.
Who are the companies making the offer? What royalty are they offering?
Hi David -
Unless you have some family medical emergency or something you need the money for, I would suggest that you do not sell your mineral interests. If you just really, really want some cash to play with, then only sell a portion of your interests, like 1/4 or 1/2.
If someone wants to buy your mineral interests it is more than likely because they know something you don't. And from my experience, their first offer is something along the lines of 1/3 to 1/4 of what they are actually willing to pay.
I have it from a very qualified authority that mineral acreage in some parts of the Permian and other Basins in West Texas can go for as high as $30K an acre if it is unleased and $10K an acre if it is leased.
Not everywhere, of course, but $1,500 - $2,000 an acre sounds like Chump Change to me.
Post your legal description(s) and I'll see what is happening in your area for you.
If you want to post your legal(s) privately, accept my offer to become A Friend on The Forum and you can send it of them that way.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
No where did he mention selling anything. This was all regarding an offer to lease.
Went back and re-read. My bad.
Call Drew Reid at the general land office. He will tell you if that’s an offer they would accept. Have your block and section info before you call.
Sorry I didn't include some of the basics about the lease. It's for 3 years and 25% royalty.
Charles: Preaching to the choir, my family is never selling their interests.
Haha, we have been offered 4 million for minerals with producing wells. Capital gains would kill us, the Feds would get half. And now companies are wanting to lease deep rights. If it wasn’t for capital gains, we might be tempted.
Kathy -
If the offer is that tempting, you may be able to use a Like Kind Exchange. Oil and Gas are considered Real Property, at least here in Texas.
And like I mentioned earlier, a first offer is typically 1/3 to 1/4 what a company is willing to pay.
If you do decide to sell, lease the deep rights before you do.
i'm wondering bout your capital gains comment. it is my understanding that cap gains are only 23.88%. with trump coming in that will get reduced to 20%.
where are your minerals that you have been offered 4mil and what is your net mineral acreage?