Sell or hold and collect royalties? Have rec’d offer to purchase my mineral rights for $4250. Rights part of inheritance. Several family member beneficiaries all offered the same amount for purchase. Totaling $25,500 for all members. We are all supposed to respond within a 12 Days time period.
That appears to be an active area with several wells completed or permitted by Centennial.
You refer to “All of Section 211” but didn’t say how many net mineral acres that offer is based on. Unless it is a very small interest $4250 sounds like a very low purchase offer.
You need to get more information before you make a decision and before anyone here could give you their advice you will need to provide some more detail on the amount of mineral interest you own.
Is your family’s interest under lease?
That is all the information that has been provided to me in the offer letter. The limited information factored together with the short time frame for response has made me very suspicious and caused me to do further investigation before accepting the offer. My preliminary investigation had led me this site and my posting. I was unsure as to whether it would warrant the cost of hiring a reputable mineral rights attorney to investigate prior to accepting any offer. Appreciate your timely response and any additional advise on what our next steps should be. Thanks!
My advice is not to sell at all. However, if you must, I’ll pay you more than they are offering. Best, Helen
So it appears we own the entire section, 640 acres. We have all decided not to respond to these first offers and see if any higher offers will be made. In the mean time, we are arranging to hire a oil & mineral rights attorney looking to form our own family LLC to use for leasing negotiations. With a family LLC we have hopes that our good fortune will be passed along to our decedents. Thanks to you all for your timely responses!
So it appears we own the entire section, 640 acres. We have all decided not to respond to these first offers and see if any higher offers will be made. In the mean time, we are arranging to hire a oil & mineral rights attorney looking to form our own family LLC to use for leasing negotiations. With a family LLC we have hopes that our good fortune will be passed along to our decendents. Thanks to you all for your timely responses!
Your family does not own 100% of the minerals in Section 211, Block 13. You own an undivided fractional interest in the section. There are other owners who have signed leases on minerals in this section. Centennial Resource Production has drilled 6 horizontal wells in Section 211. One well was drilled in w016 and 5 were drilled in 2018. Your family likely has royalties being held in suspense by Centennial which will be released when the title is clear. Tax records for the 2016 well lists 19 royalty owners. All have addresses except Estate of Nettie Jo Rowe. Contact Centennial Resource Production LLC at 1001 17th Street, Suite 1800, Denver CO 80202. Royalty owner relations is 888-550-8876 and ask for landman for the Adobe 1H; Adobe A 3H; Adobe B 4H; Adobe C U 19H; Adobe D U 26H and Adobe E U 32 H wells to contact you. Explain that you and other family members have been contacted about a mineral interest in this section. Owner relations email address is on Centennial’s website. They will work with you to get everyone in pay. Good luck.
Thanks for the additional info. I’ll pass it along to the attorney.
I recently LEASED mineral rights in Section 266, Block 13 for $11K/nma to Centennial FOR A 3-year lease. Not sure how close you are to this property, but, my guess is that $4250 to BUY
your mineral rights is probably really low-balling it. My advice, as also noted by another responder, is to NEVER sell your mineral rights.
Actually it was $4250 each and there are 6 of us that inherited the rights. So $25,500 total and yes that is why I was so suspicious. In doing my research I found this group. We have now obtained an attorney in Texas to file for full title to these rights in our names. We hope to have any past royalties that are being held in trust paid out to us. We will also be forming a family LLC that will be used to negotiate future leasing agreements. Glad that I was able to find this site and I thank you all for your help!