Hello All~ I have received interest from several companies regarding minerals I own in Irion County, TX. The offers are surprisingly high. I know there is nearby drilling. Is Desert Royalty a legit company? I’d appreciate any assistance. Many thanks. Melissa
Don’t sell your mineral rights unless you’re absolutely desperate for money. If there is drilling in your area, your royalties in three months could equal anyone’s offer. Don’t do it! Two of my royalties checks equal offers that I know people have accepted. I have a horizontal well that could produce for ten to twenty years. Selling your mineral rights is a horrible business decision.
You could offer to sell half–or some other fraction–of your interests. Twelve or so years ago, there was a Cline Shale boom which went bust, and mineral owners who got big offers but declined to sell might still have regrets. If after doing your own due diligence you decide to sell, have an attorney review the contract, check for suspended funds, and provide escrow services. It might be a good idea to trade a signed mineral deed only for a cashier’s check.
Desert Royalty out of Midland is a very legit company in my opinion.
I agree with AJ’s comments. But before doing anything else be sure you understand what’s happening, or may be soon, in your area. You said you knew there is drilling nearby but if you haven’t checked the information available online from Texas Railroad Commission, post the legal description (block and section, survey or abstract number) where your interest is located and someone on the forum will help you get into it.
You didn’t mention if your interest is currently leased. If it’s not, the folks making offers to buy it may know that operators have acreage under lease around you and are likely to be interested in yours. I’d see what’s possible on leasing before considering selling.
Dusty- Thank you. The property is currently leased. He sent me a platt showing the companies drilling around the new fracked well. The offer I received seems in the realm of what the average price I am receiving in other offers. Thank you again.