When looking to sell mineral acres that are going to add new wells in the near furure, would you list with an exchange (ex. US mineral exchange) or contact buying firms on your own?? Recommendations?
Hi - great question! Of course the answer is that it depends on how much work you want to do and as a result how much you want to spend on getting help selling. If you list with an online auction or exchange website, they will charge upwards of 6-10% of the sales price, depending on the size of the interests. If you had interests with no activity then listing on a website like EnergyNet might enable you to find a willing buyer whereas contacting buyers on your own you will likely find that most will not be interested. That said, if you have interests with recent permits, a rig onsite, or wells that have already been drilled then it will not be as difficult to get purchase offers. If you do decide to go on your own, get a basic appraisal so you have a good idea of what the property is worth and the trade-off you will be making in terms of possible future royalty payments vs. the lump sum you would get today. That way if you do decide to sell you have a basis to negotiate for a higher price. Also get help from an attorney to review the PSA and deed before you sign anything. To find qualified buyers, you can look at the county clerk & recorder’s website to find recent mineral deeds to see who has been buying minerals in your area recently. Be sure to do due diligence on any companies first and don’t hand over a deed before getting paid (even a scanned copy which can be recorded electronically). Good luck!
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