- Tim Greene
Purchase offers becoming more aggressive lately?
Mineral and Surface owners, are you being approached more aggressively by buyers wanting to purchase your mineral or surface asset?
This phenomenon is not unexpected in these slow times in the Oil and Gas Industry. These “Buyers of Minerals and Surface Assets” want to purchase at the lowest possible price, betting that gas and oil prices will rise significantly, (they always do). Allowing them to reap the benefit of a possible royalty check or turn around and sell the mineral or surface asset to someone else for typically a very large profit.
If a mineral or surface owner is in a situation where he or she needs the money, then negotiating a price to sell the mineral or surface asset may be the way to go. However, you should work to not give in to the temptation of accepting an offer that is not market value or be fearful of the many pressures that may be utilized by the buyer.
Remember, the goal of the buyer is to purchase the asset for as little money as possible. Also, once you sell, you lose any control on what happens to the asset. Be very careful if you own both the surface and the mineral in the same parcel. If you sell the mineral and not the surface, your surface may still be affected by the mineral owner when it comes time to access his or her mineral.
Finally, be careful of making the decision of selling without first getting whatever amount of information you need in order to make a rational and informed decision that is best for you and your heirs about the asset. Bear in mind, once the asset is sold your decision is permanent. Good Luck!