When you should not sell your mineral rights.

We buy minerals for a living, so take this page as seriously as anything on the site: there are times when selling is simply the wrong move, and a buyer who will not tell you so is not negotiating, he is hunting.

Don't sell into imminent drilling without knowing it

If there is a new permit on your section, a rig nearby, or a fresh pooling application naming your land, your minerals may be days or months from a major value event. This is exactly when offer letters surge, because buyers want to own the upside you have not priced. Before selling anything in an active area, find out what is permitted around you. We will tell you for free, even though it routinely costs us deals.

Don't sell brand-new production at old-production prices

A well in its first year or two produces at rates that will not last, but the flip side is that early, high-decline cash flow plus a long tail is worth real money priced properly. If your first big checks just started arriving, be very careful with offers based on "months of average check," because the average is about to be redefined. This cuts both ways, which is why the decline curve, not the check stub, is the honest basis.

Don't sell to solve a short-term problem you could solve smaller

If you need $20,000 and your minerals are worth $200,000, sell a tenth of them, not all of them. Partial sales are normal, we do them regularly, and any buyer who insists on all-or-nothing is optimizing for themselves.

Don't sell in the middle of a pooling election without advice

An OCC pooling order gives you options with a deadline, and your election changes what you own and what it is worth. Make the election decision and the sale decision with the same clear head, not under time pressure from either. Our Oil Scout guide to pooling orders is a sane place to start.

Don't sell what you don't understand yet

If you cannot yet say what you own, what it produces, and why the number in front of you is fair, you are not ready to sign, no matter how friendly the buyer. Understanding is cheap: our valuations are free and come with the reasoning shown, and there are good attorneys and CPAs for the rest.

So when does selling make sense?

When the cash serves your life better than the trickle: simplifying an estate, funding something that matters now, exiting an administrative burden, or capturing the stepped-up basis on inherited minerals. Selling is a legitimate financial decision made well by informed people every day. Our whole model is that informed sellers still sell, they just sell fairly. If that is you, find out what your minerals are worth. And if it is not you yet, keep them with our blessing.