Hi! Newbie here. My husband inherited mineral rights in several tracts in Lea County and Eddy County. Although he actually has other producing Lea Co. assets not listed in the offer, he received an offer of over $45,000 for his 5.34 NRA in Section 17/18S/29E, 23/20S/35E, 5/19S/35E, 17/20S/36E, and 9/19S/35E. Is it possible they could actually be worth that much? Or is that low?
We also have tracts in Loving, Midland, Knox, and Yoakum Counties, TX. And in some unusual locations. We are interested in selling them all and paying off the rest of our house. Thanks!
It would depend on how much of the 5.34 NRA is in each of those sections. Top of the head ballpark answers on fair market, at least in my head:
18s29e Sec 17 : $11k/nra
20s35e Sec 23 : $12k/nra
19s35e Sec 5 : $11k/nra
20s36e Sec 17 : $1k/nra (outside the Delaware Basin, IMO)
19s36e Sec 9 :$1k/nra (outside the Delaware Basin, IMO)
So if its equally divided 1.07nra each section then I’d say $45k is pretty strong. If it were almost all in the top 3 sections then its probably a bit low.
I don’t see any way that its terrible. But I can’t imagine you got a unbelievably great offer out of the blue. So it’s probably between terrible and great.
If you have a bunch of things you want to sell (here and other counties) it may behoove you to talk to a professional marketer of things to make sure you get multiple sets of eyes on whatever it is that you own. Probably worth the 5-10% commission.
To echo NMOilBoy… if you are considering selling it all, it is probably best to chop it up and sell it to parties that specialize in each area or grab bids from one or two regional buyers, a bid from a basin agnostic buyer that would buy the whole package, and compare notes.