Sell Mineral Rights
Mineral owners approach us all the time wondering how to sell mineral rights. If you are wondering how do I sell my mineral rights, we can help.
We’re going to break down everything you need to know about selling mineral rights.
Selling Mineral Rights vs Selling Royalties
It’s important to understand what you are selling.
When you sell mineral rights, you are selling all of your ownership to any future oil and gas production.
When you sell royalties, you are selling all of your ownership to any future oil and gas production.
These term sell mineral rights and sell royalties are used interchangeably. This means whether someone says you are selling mineral rights or selling royalties, you are giving up the right to all future oil and gas production.
It is possible to sell a “well bore only” interest. When selling mineral rights with a well bore only interest, the mineral buyer is acquiring only production from the wells currently in production. They do not get the mineral rights. This means that any future drilling that occurs is still yours to keep. While this is possible, this is exceptionally rare. Less than 1% of mineral rights sales are wellbore only.
Where to Sell Mineral Rights
When you sell oil and gas royalties, there are a number of ways to sell mineral rights. How you choose to sell your mineral rights is a question of personal preference. Some mineral owners choose to sell mineral rights on their own, others choose to use a mineral rights broker.
If the value of your mineral rights is under $100,000, we recommend getting some quotes to sell mineral rights from a few different buyers. You can then compare these quotes to see which buyer is offering the best price. When the value is under $100,000, it doesn’t necessarily make sense to work with a broker. At Fraction Royalty, we provide mineral owners with a same day quote. Simply fill out the form at the bottom of this page to receive your quote to sell mineral rights.
If the value of your mineral rights is over $100,000, we recommend working with a mineral rights broker. The reason is that once the value is greater than $100,000, a mineral broker creates a lot of value for you. When the value is higher, a quality mineral rights broker can put resources behind marketing your mineral rights effectively which will lead to the best possible price. If you own mineral rights in Texas, we recommend listing at Texas Royalty Brokers.
When to Sell Mineral Rights
There is not perfect time to sell royalties. For most mineral owners, it comes down to your personal situation.
However, there are a few things to keep in mind when deciding when to sell mineral rights.
The best time of year to sell mineral rights is from January to November. During this time, mineral buyers are completely focused on acquiring mineral rights. Some mineral buyers are also receive funding at the beginning of each year. This means mineral buyers are flush with cash at the beginning of the year.
The worst time of year to sell mineral rights is from Thanksgiving to New Years. Why? The reason is that mineral buyers, like most of us, are distracted with the holidays. While you can sell oil and gas royalties during this time, you will likely see more demand from buyers at other times of the year.
Tips for Selling Mineral Rights
The number one tip for selling mineral rights? Get a quote!
The first step to figuring out the value of mineral rights is to get a quote. While you can estimate the value of mineral rights, the only way to know for sure is to get a quote from a mineral buyer.
As you gather quotes to sell your mineral rights, you will start to get a better idea of what the value is. You can then negotiate a deal with the highest offer you receive to ensure you get a fair price.
Another tip for selling mineral rights is to qualify the buyer. Can the buyer do all of the following?
- Put the offer in writing
- Close within 30 days
- Quickly communicate with you
Does the buyers website appear legitimate or does it look old and outdated?
As a mineral owner, you can avoid working with a deadbeat buyer by paying attention to how the buyer is acting and whether they have a professional presence online.
Offer to Sell Mineral Rights
If you are wondering how do I sell my mineral rights, we can help.
To get an offer for your oil and gas royalties, fill out the form below. Once we receive your 3 most recent royalty statements our team will quickly reach out with an offer. We will provide you with a firm offer in writing.
Whether you feel the offer is something you want to accept is up to you. We will not put any pressure on you to move forward with any offer we provide.
Same Day Quote
After we receive your last 3 months of royalty statements, our team will put together a formal offer for you to consider. Your formal offer will be ready within 24 hours, and typically the same day you provide your documentation.