After her father passed a few years ago, my mother was notified that she inherited about 400 acres of mineral interests in Leon County.
She told me she does have a 5-year lease put in place back in 2020, but she’s been getting calls and letters with offers to sell lately, but none have told her an actual dollar amount. Then recently she got a letter that did, and it was a Gross Acreage Offer of $780k, which comes out to about $2,000 per acre.
Would this be considered a fair amount? It’s hard to find a straight answer online, and I understand there are many factors involved in finding the answer. Just wanted to get a general grasp of, if this is a good ballpark number, could we use this offer to negotiate with one of these other companies?
In general, offers tend to be lower to see who will bite and who does not do good due diligence. Offers usually come before drilling, so you need to find out if there is pending activity in the area, if new wells have just been drilled and are about to come online. You also need to check the unclaimed funds at the Treasurer’s office for Texas to see if anything is sitting there to be claimed.
If you give the abstracts and areas, folks on the forum can help you with the activity in the area. The more offers she has, the more that tells me the “something is up”. She may not want to sell if she is about to have a bunch of new infill wells.
When you can lease for a 3 year term, with no options, and a 1/4 (free royalty) in Leon County in the last week in between Centerville and Marquez, why sell for $2,000 per net acre? ? ? ? I know this to be a FACT! This acreage was leased to Comstock. I would pay absolutely no attention to anyone that bases their advice based upon current oil and natural gas prices. With 400 acres you have a whole lot of leverage to deal with.
You need to find out how many Net. Mineral acres that she actually owns or net. royalty acres. Find the the lease that was signed. Ask to see the actual document that they would want her to sign and the exact amount of a check she would receive. If they offered $10,000 per acre and she only owned 1/2 of the minerals she would only realize $5,000/acre. But it is a lot more complicated than that. Proceed with caution. I would never sell!