If you own oil and gas minerals, you have received an offer in the mail to purchase them. Most letter offers don’t list an offer price, but some do. So what about those that do list a value? Are those numbers a good market value for your oil and gas royalties?
A reputable company may quote a purchase price that they intend to honor. There are obviously some unforeseen things that could negatively affect their offer. For example, running title may reveal the net mineral acreage is less than originally thought. This would understandably reduce the offer price to purchase the minerals. However, many companies appear to intentionally list a higher price than they know they will actually pay. Their goal is to get your attention, engage you in a conversation, and then begin negotiating.
The bottom line is that if you are thinking about selling your oil royalties and receive an offer that’s outlandish, don’t quit your day job! Enter into discussions carefully and be prepared to bail if you feel manipulated.
If you are thinking of selling your royalties, need a mineral rights appraisal, or a free consultation regarding title transfer, estates with oil and gas royalties, or other general issues common to mineral rights and royalty owners – call us at 800-950-6954 and for more information, visit our website at www.LegacyRoyalties.com.