I recently found out I have inherited mineral rights and have a purchase offer but it feels sketchy. How common is it for purchase offers to be back dated by more than a month or not ask for documents to be notarized when signed and emailed to them?
It’s common, but only because the purchaser is trying to get the most royalty from it as possible. As far as the process…well…I don’t think I’d personally sell my minerals to someone I don’t trust over email. You can let us know who is giving the offer and we can see if someone here knows of them or what we can find. And if you let us know where these mineral rights are (state, county, section) then we can help give you more guidance on what they might be trying to do.
Either way, you should hold on to your minerals until you 100% understand the transaction. When in doubt, keep them. Are you getting any royalty checks right now? Do you know if they are leased? I’m guessing yes on both since the offer was backdated?
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If you have inherited mineral rights, you need to file the probate documents in the county courthouse(s) where the minerals are located.
You need to find out if there is any production and contact the operators to get into pay status. Not all minerals may be in pay status at the time of inheriting.
Set up good files. Collect everything you can from the estate information and family files. Get familiar with the state websites and ways to fill in your gaps in info. You are doing your heirs a favor!
You need to find out what the value of those minerals are worth as soon aftr inheriting as possible. They will be set as of the date of death of the ancestor. If you ever sell, you will need that information and it is harder and harder to figure out as time passes along.
You need to get informed as to the past activity and pending activity in the area surrounding your minerals. Most offers are because the buyer knows something you don’t know and they plan to make a profit. Find out what is going on so you can decide whether or not to sell based on the financials of present value and future value and what your financial plan is.
Make sure that you have good estate planning and that the minerals will be included in that plan.
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Thank you for your responses. I will have to start wading through paperwork. I am not getting checks at this time and am not sure that anyone is currently leasing. The company is shalecase and the property is in Beckham county Oklahoma. Township 11 North, Range 25 West I.M. Section 35 (SE/4 NE/4)
We have a purchase question. A company has approached us and made an offer that’s worthy of consideration to us. The question is why would a reputable company make an offer on a producing property in New Mexico that would take approximately 50 years to recoup their investment? Unless new drilling was planned? Thanks.
Usually new drilling is planned and they have every intention of making a profit off of you. Ask around to your friends and neighbors and post on the New Mexico forum in the correct county and see if there is any pending activity.
Fourpoint Energy has pending OCC cases for increased density and horizontal well(s). The purchaser wants the value of those future wells. You need to contact them and make sure you are on their owner list. Also, there are current wells in the section owned by BCE-MACH. Contact them and see if you need to get on their owner list and into pay status as well.
http://imaging.occeweb.com/OG/Well%20Records/0058B0D3.pdf. (Transfer order with BCE address on it)
FOURPOINT ENERGY, L.L.C. 100 SAINT PAUL ST., STE. 400 DENVER, COLORADO 80206-5140 Contact Name: GRAYSON BARNES Contact Phone: 918-382-8686
Ok thank you for the information.
Sometimes new drilling is planned and other times they are speculating and taking a risk based on production in the area and activity in the county. Nobody buys minerals unless they plan to make a profit at some point. Sometimes it is worth it to sell if you value the guaranteed money now instead of taking the risk of owning minerals and hoping for a profit in the future. (today’s drop in oil prices is an example of risk associated with owning minerals) Who is the offer from?
West Bend Energy Partners 2 LLC Quite a significant offer. Probably withdrawn now although the offer letter gives us until 3-21 to respond.
I think it depends on the county the minerals are in. Some mineral properties are still valuable enough that they won’t pull offers. If the letter says that the offer is valid until 3/21 and they haven’t contacted you to rescind the offer then it is probably still good. If the offer expires and you are still interested in selling, you can always contact a landman to shop the minerals for you. I do that for clients fairly often and so do many other landmen. This can often help you find the best deal or you can get an opinion by a professional on the current offer you have.
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