I have been made an offer to sell my mineral rights in 8N, 5W of Grady county for $7,500/per mineral acre. I was wanting to find out, from anyone who might know, if this is a great, decent, or not so decent of an offer. I have no idea what mineral rights are being bought for around this area. Anyone with any knowledge, please respond. Thank you!
rule of thumb: minerals usually sell for about 1.5 to 3 times more than you can lease them for. Based on leasing in the general area, I'd say its very good. Caveat: Know your buyer. Often they give you a 30-60 day draft, then they try to find a buyer, and if they don't, they never pay you. Tell them to check title in 3-4 days and come back then with a check.
Hi Tammy - How many acres do you own?
Thank you DB
Marcus I have 45 acres
Tammy, if someone is offering $7500/ac they are expecting to make a nice profit on the deal by reselling it or participating in a future well. Most people would tell you not to sell unless you really need the money. How many acres you own is your business.
Thank you Michael
Well if they intend to re - sell it for a profit then it’s worth more than that. Isn’t there some way to bypass the middle man and go straight to the source to get what it’s really worth?
Most buyers of mineral rights base their offers on what they expect as future value. If I buy from you today and 6 months later an operator decides to drill 6 wells in that section I can easily double my money by selling or participate in the wells and make in royalties many multiples of that $ 7500/ac over the next few years. It is speculation based on research. If you really want to sell now bargain with them, ask for $10 or $12,000/ac and see what they say. But keep in mind the real value is in future royalties. There are no guarantees of future value but thats what the buyer is betting on.
Thanks Michael
Michael Hutchison said:
Tammy, if someone is offering $7500/ac they are expecting to make a nice profit on the deal by reselling it or participating in a future well. Most people would tell you not to sell unless you really need the money. How many acres you own is your business.
We also have had an offer for 5 acres in Grady County for 7500 an acre. How can we find out whether to seek or not? I noticed your comments. Do they still hold for 2015?
charles Bassett said:
Michael Hutchison said:Tammy, if someone is offering $7500/ac they are expecting to make a nice profit on the deal by reselling it or participating in a future well. Most people would tell you not to sell unless you really need the money. How many acres you own is your business.