HOW MUCH ARE MY MINERALS WORTH? HOW DO I RECEIVE HELP TO SELL MY MINERALS? – THE VALUE OF AN ADVOCATE WHEN NEGOTIATING A SALE
Recently, we learned of a mineral owner who decided to sell her mineral interests to investors. Even though she held considerable holdings in the oil-producing Eagle Ford shale, she opted to use a friendly, but inexperienced, friend to help assist in the sale.
The friend put her in touch with a party who would buy the minerals quickly. After a short time negotiating, a deal was struck that the friend thought was good. The mineral owner’s sizable interest was sold for $20,000 per mineral acre.
A pretty nice sum, right? Well…not really.
It turns out that the buyer of the minerals never intended to hold these minerals as a long-term investment. They were merely a “flipper”.
Flippers are common in the oil industry. Typically, a flipper will negotiate an oil lease with a mineral owner, with no intention of drilling, and then sell the lease to a large oil company, profiting the difference. It occurs with mineral sales, as well. Flippers are out to make a quick and easy buck. They represent money left on the table, which should be going to you, the mineral owner.
In this case, the flipper immediately sold the mineral owner’s minerals to one of their contacts, for $24,000 per mineral acre. This resulted in a quick profit of $4,000 per mineral acre to them. And, $4,000 per mineral acre that the mineral owner could have received had she an effective advocate on her side. Put another way, the minerals were worth 20% more than the mineral owner and her friend thought, and somebody else got to profit that 20%.
Hilltop Royalties bypasses the flipper, and puts more money into your pocket.
Hilltop is a business that we formed as a hobby to help mineral owners. We do not charge an upfront fee, and we let you decide our commission amount in advance. No risk. Call or E-mail us today, and let us help you.
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