If you own mineral rights in New Mexico, you may be sitting on an asset that’s more valuable than you realize. Whether you inherited these rights, bought them years ago, or have just recently discovered them, it’s important to understand what you have and what your options are.

At Fraction Royalty, we work with everyday mineral owners to make the process of selling rights easy and stress-free. Even if you only own a small interest, we can get you an offer in 24 hours and close in as little as 7 days. Our process has no pressure, no obligation, and we even cover closing costs.

Let’s walk through what you need to know about selling mineral rights in New Mexico and how to get the best value without any hassle.

New Mexico is one of the biggest oil-producing states in the U.S. thanks to its location over part of the Permian Basin, one of the richest oil reserves in North America.

Hotspots for Mineral Rights Owners

The most active oil-producing areas in New Mexico are in the southeastern part of the state. If your mineral rights are located in Lea County, Eddy County, or Chaves County, they could be worth more than you think.

These counties have seen a massive increase in drilling activity over the past decade. Major oil companies and smaller operators are all investing heavily in this region. In particular, the Delaware Basin—a subsection of the Permian—is known for its deep, productive wells.

Why This Matters to You

If your rights fall within these high-production zones, even a small royalty check could be a sign that your rights are worth serious money. At Fraction Royalty, we look at current drilling, nearby activity, and geological trends to evaluate your mineral rights quickly and accurately. Even if your rights haven’t been leased or developed yet, we can still make you an offer based on the potential value.

New Mexico has a unique tax system that applies to mineral owners. If you’re receiving royalty payments or plan to sell your mineral rights, it’s helpful to understand the state’s tax rules.

Severance and Ad Valorem Taxes Explained

There are two main taxes that impact oil and gas production in New Mexico:

1. Severance Tax – This is a state tax on the value of the oil or gas removed from the ground. If you’re receiving oil royalties in New Mexico, this tax is typically deducted before your check hits your bank account.

2. Ad Valorem Tax – These are local property taxes based on the value of oil and gas production. They vary by county and can affect your income as a mineral owner.

These taxes can be confusing, and unfortunately, they reduce the net amount that mineral owners actually take home. The good news is, if you’re selling, we take those tax factors into account and still provide competitive offers with no hidden fees or deductions.

One of the unique things about New Mexico is how much of the land is owned or controlled by the federal government or Native American tribes. This creates additional layers of regulation when it comes to mineral development.

Navigating Complex Ownership

If your mineral rights are located on:

• BLM-managed federal land, or

• Tribal land (such as Navajo Nation or other Pueblo tribes)

You may be subject to leasing restrictions, additional approvals, and delayed oil and gas royalty payments. This can be frustrating for mineral owners who feel stuck in a slow-moving system.

At Fraction Royalty, we’ve helped mineral owners navigate these tricky situations. Even if other buyers have told you “no thanks,” we’re happy to take a closer look. We know how to work with federal and tribal systems and can still get you a fast offer.

Understanding what’s happening in the market today can help you make better decisions with your mineral rights. New Mexico is experiencing some interesting trends that could affect what your rights are worth.

Increased Leasing in High-Potential Areas

Oil companies are still aggressively leasing in productive areas, especially in southeast New Mexico. Even if prices of oil fluctuate, the long-term demand for domestic energy keeps leasing strong.

We’re also seeing:

• A rise in multi-well pads on existing leases

• Smaller companies offering high upfront bonuses to secure acreage

• Private equity and family offices entering the space, especially looking for smaller deals

The overall takeaway? There’s still strong demand for minerals in New Mexico. If you’ve been thinking about selling, now is a good time to explore your options.

Small Deals Are in High Demand (But Often Ignored)

Most brokers and large buyers focus only on big portfolios. At Fraction Royalty, we do the opposite. We specialize in small mineral rights deals that most others won’t touch. Whether you have 0.5 net mineral acres or 50, we treat your situation with the same attention and respect.

You might be surprised at how easy it can be to get a no-obligation offer for your mineral rights.

A Simple 3-Step Process

1. Send Us Your Info
   Fill out a quick form on our website with some basic details about your mineral rights, such as the county they’re in and whether you’re currently receiving royalty checks.

2. We Send an Offer Within 24 Hours
   Our team reviews your information and puts together a personalized offer. No gimmicks, no pressure.

3. We Close Fast—In As Little As 7 Days
   If you decide to move forward, we handle everything. We cover all closing costs, communicate clearly, and close fast.

Whether you’re looking to sell now or just exploring your options, we’re here to help. Even if you’re not sure what you own, we can usually help you figure it out.

It costs you nothing to find out what your New Mexico mineral rights are worth. Many of our clients are surprised by the value of their holdings—even if they’re small or not currently producing.

We’ll run title, check nearby production, review market conditions, and give you a no-obligation offer. We don’t charge for evaluations, and we don’t pressure you into selling.

If you’ve been thinking “should I sell oil rights in New Mexico?”, this is the easiest way to find out.