# The Seller's Dilemma | Berlin Royalties > It is a weird feeling to get an unsolicited offer to purchase an asset from another party. Berlin's initial thought is something like 'well, i… Source: https://www.berlinroyalties.com/oil-scout/the-seller-s-dilemma/ Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645. License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL. ## The Seller's Dilemma By **Stephen Clayman** · May 15, 2018 Oklahoma Oil and Gas Mineral Owners: It is a weird feeling to get an unsolicited offer to purchase an asset from another party. Berlin's initial thought is something like "well, if Shortline Minerals thinks these are worth $5000/ac, they must know something I don't as I would be happy to sell for half of that." Berlin could sell for the $5000/ac price and turn around and deploy those funds elsewhere. However, it will always be in the back of her mind how and why Shortline is able to pay that much for her fringy STACK properties. Maybe they have a company landman on the take and Shortline knows that the section is scheduled for a density test. Maybe there was a seismic shoot in the area that Berlin didn't know about and the interpretations look promising. But it's also possible that Shortline has a low cost of capital, their sponsor has a low hurdle rate or that they are paid a commission on an acreage basis. Just because someone is throwing around a lot of money, doesn't make them right or that their project will ultimately succeed. This internal monologue is the second most often cited objection to not selling minerals (the first being, "pa told me never to sell and for some reason this is the one thing that I never questioned my parents about..."). Berlin thinks of it as a dilemma. After all, it sounds like a decent trade if someone is willing to pay 4-7 years of cash flow for the asset and assumes the regulatory and commodity price risk of owning producing Oklahoma royalties. And if the mineral has higher and better uses for the cash it can be a decent trade. After all, a leased mineral owner cannot easily add value to the minerals by increasing production through development. However, one could take the cash and invest it into an enterprise that they do have control over. Berlin would be interested in hearing your thoughts on the issue, both from the buy and sell sides. More to follow, Berlin ### Thinking about selling your minerals? Berlin Royalties buys Oklahoma minerals and royalties, and we show you the work behind every offer. Free, no obligation, and if keeping them is the right answer we will tell you that too. [Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/) or call or text **[918-984-1645](tel:9189841645)** More From The Oil Scout [March 26, 2018 ### Assorted Links (and a chance to win an Amazon gift card) Here are a few links that Berlin read over the weekend that will be of interest:](https://www.berlinroyalties.com/oil-scout/assorted-links-and-a-chance-to-win-an-amazon-gift-card/) [March 1, 2018 ### Is $10 Actually the Bonus Per Acre? Berlin received another call from Bruce today. He was angry and slightly confused. Bruce was sure that some fly-by-night lease flipper was fix…](https://www.berlinroyalties.com/oil-scout/is-10-actually-the-bonus-per-acre/) [April 23, 2018 ### A Well Proposal In Oklahoma - A Boon to the Mailman Berlin's friend Bruce called her up on Friday, and after he finished ranting about planting his tomatoes before the last frost date, he got do…](https://www.berlinroyalties.com/oil-scout/a-well-proposal-in-oklahoma-a-boon-to-the-mailman/) [March 29, 2018 ### "Yes Please, I'd Rather Have a Dividend" - Stockholder As yall are well aware, Berlin's finance (that's 'fuhnance') prowess is on par with her triple lutz, triple toe, which is non-existent. That b…](https://www.berlinroyalties.com/oil-scout/yes-please-i-d-rather-have-a-dividend-stockholder/)