If you are looking to sell mineral rights in Oklahoma, it can be hard to figure out where to start. There is so much information out there, how do you know who and what to believe. Figuring out what information is accurate and what information can be trusted is a task. We hope you will find helpful information below on how to sell mineral rights in Oklahoma. Knowing this information can lead you to make the best decision for your situation.
How to Sell Mineral Rights in Oklahoma
The first step in selling anything is understanding what you own so you can accurately market it. That can be tough with mineral rights. There is so much to the oil and gas industry that it feels like there is no one single place to look for guidance. For example, if you were going to sell your car you would look to the Kelly Blue Book to get the value so you know how to price it in the proper range of value. Or if you were selling a home you would work with a realtor to determine value. With mineral rights no such websites exists. We recommend using a professional like US Mineral Exchange to sell your mineral rights. Just as you would use a realtor to sell your home, using a mineral listing agent to sell your mineral rights in Oklahoma will put the greatest value back in your pocket. It will also get your mineral rights out in front of the largest audience of mineral buyers.
How to Get Maximum Value
Exposure in the market is the best way to get the most value when you want to sell mineral rights in Oklahoma. That means you need to get your mineral rights out in front of the most mineral buyers. Just like when you sell your home and use a realtor to put your home on the MLS, using a broker to list your mineral rights gets them in front of the largest audience of mineral buyers. This will help facilitate finding the one mineral buyer that will value what you own the highest. Meaning you will get the most value from your sale.
Mineral Rights Buyers
Many times mineral buyers will approach you with offers and pressure you into feeling as if you need to sell to them. They act as though they are the only mineral rights buyers in Oklahoma who would be interested in your mineral rights. What is often the case in these situations is you are being pressured to act quickly to sell for less than your mineral rights in Oklahoma are worth. It is impossible to tell if you are getting a fair market value without getting multiple offers on your mineral rights. What many mineral rights buyers in Oklahoma do is they buy your mineral rights at less than market value and then turn around and sell them, or “flip” them, to another mineral buyer for a higher price. This takes money directly out of your pocket, money that should be yours.
Another thing to watch out for is information that could be missing from any written agreement a mineral rights buyer in Oklahoma sends you and asks you to sign and send back to them. Every mineral rights buyer uses different language in their documents so you need to ensure you are properly protected and know exactly what you are agreeing to sell. There can be many red flags such as closing dates, knowing how many acres you are selling and at what price, how the funds will transact. These and many other things are ways a mineral rights buyer can play to the advantage of knowing the industry while you are the disadvantaged one, potentially left holding the short end of the stick. Any time you sell mineral rights you want to ensure you are covered in all the legal documentation.
Being careful to sell to a reputable mineral buyers that will pay you fair market value for your mineral rights is the only way to ensure all the money from the sale gets into your pocket. Deciphering which ones are reputable mineral buyers can be the hard part.
Common Mistakes
One of the biggest mistakes mineral owners can make when they want to sell mineral rights in Oklahoma is accepting the first appealing offer they receive. Many times mineral owners can be convinced their mineral rights are worth less than they actually are. Mineral buyers that want to flip your mineral rights to make a profit for themselves apply pressure and represent they are making you an amazing deal that you should not miss out on. The only way to truly know what the highest market price available for your mineral rights is by getting multiple offers from multiple mineral buyers.
Once you have secured multiple offers from multiple buyers, you can then compare the offers. Doing this helps determine a range of value and may help find the one mineral buyer that will give you the most for the sale of your mineral rights. The problem with doing this yourself is that it’s nearly impossible to get enough offers to get fair market value.
We feel the easiest way to accomplish this goal of getting multiple offers from multiple buyers is by using a reputable mineral listing agent. This puts the work on the listing agency and not on you to go out and find reputable mineral buyers for your mineral rights. They will also expose your mineral rights to mineral buyers that you may never have found on your own online.
Mineral Rights Value
Determining the potential value of your mineral rights to decide if you want to sell can be no easy task. If you have mineral rights they will fall into one of the three following categories.
- Not Leased and Not Producing
- Leased and Not Producing
- Leased and Producing
Not Leased and Not Producing
If you have never leased your mineral rights then they would fall into this category. You may be unsure if the mineral rights you own are leased or producing, if that is the case, then they most likely are not. Many mineral rights are inherited and you do not know if the person you inherited from ever received any checks or royalty income from the minerals. To find out if there may be funds due you from past royalties it would be wise to check with the State Unclaimed Property Department in Oklahoma. Doing this will give you an idea if the mineral rights were ever in pay and the operator just did not know who to pay for some time and therefore the funds went to the state. If there are no funds held in suspense in the persons name you inherited through most likely there are not leased or producing and therefore the mineral rights value would be very little.
If you are wishing to lease the mineral rights typically you must wait for an operator to become interested in drilling in the area your mineral rights are located. The operator will then reach out to you to negotiate the terms of the lease and the lease bonus amount. You want to get the bonus amount per acre and the lease royalty percentage number up as high as possible.
Leased and Not Producing
If your mineral rights are leased but not producing any royalty income, thus indicating no wells have been drilled on the acreage the range of value may be a bit more clear cut. Many times the range of value for minerals in this case is two to three times the lease bonus amount you were paid to lease. For example, if you leased your minerals for $500 per net mineral acre, you could potentially sell them for $1,000 to $1,500 per net mineral acre. This is only a guide and many times your mineral can be worth more or less depending on a range of factors.
Leased and Producing
Mineral rights that fall into this category can be both the easiest and the most difficult to determine range of value for. By using the royalty calculator below you can get a very broad range of value based solely on the income the mineral rights are producing from drilled wells. The danger in using this as your only data point is that there are many other factors that go into determining the value of mineral rights. Mineral buyers will look at a large range of things including, operator, age of wells, location, size of ownership, production and decline curves, just to name a few. Basing your mineral rights value on income alone is not an accurate picture of what your mineral rights may be worth.
Selling mineral rights in Oklahoma can be very rewarding but at times very confusing. There are so many factors to be taken into consideration when you wish to sell your mineral rights. That is why we suggest using a mineral rights broker who can ensure you get the best price. That way you can be assured that you are not missing a detail that could make all the difference.
How to Sell Mineral Rights
Selling mineral rights in Oklahoma can be a painless process and we would love to help you navigate that process. We feel that there is a way you can sell your mineral rights in Oklahoma with confidence knowing you were not taken advantage of. The main 3 things we would recommend so you can feel successful are: know and understand what you own before selling it, get multiple offers from multiple mineral buyers before agreeing to sell, know and understand any documents you are asked to sign before signing.
We would love answer any further questions you may have or just hear from you if you have had any enlightening experiences selling your mineral rights in Oklahoma. Being quick to respond if you reach out to us is something we pride our selves on so be watching for an email from us when you reach out.
Please feel free to use the contact form below to ask any additional questions or just let us know this information was helpful. We look forward to hearing from you!
