Due to an estate issue my cousin is needing bids on her mineral rights.
Can someone lead me in correct direction?
26-17N-3W I think she has around 4 acres.
Has she already leased? Because I think Osage drilled a well there. Does she want to sell?
You might look at the MKT PLACE at the top of the forum or someone more familiar with the Logan area may have some names of folks looking to buy.
I think she just needs fair bids to determine the value. I do believe she has leased.
A professional mineral appraiser might be able to determine a value. However, fair value is hard to get. http://mineralsappraisers.org/
A general rule of thumb is four times your annual oil revenue and seven times your gas revenue. Just a ballpark number.
The rule of thumb is hard to use when more wells could be drilled in the section. There's a possibility the production could more than double.
You probably need a certified appraisal from a state certified general appraiser or from a registered professional engineer. On a small interest you might use an income multiple but I don't see that you indicate any income history. And yes, if additional wells are possible, then the current income is fairly meaningless as to the "value".
If no income, the best way is with comparable sales and there are a lot of sales in Logan County. Figuring them out though is something else. Are they near existing wells? Have they been depleted? Is a recent application to drill around? (Royalty buyers tend to seek property where applications have been made for drilling)
1108-CurrentLoganSales.JPG (94.2 KB)
There is a producing horizontal Miss well in Sec 26-17N-03W http://imaging.occeweb.com/OG/Well%20Records/1DD16435.pdf
How did you get this data? Did you run title to determine net acres?
Parker
Deeds and OGL often report the correct net mineral acres. Those deeds are in the courthouse and can be searched on line via a pay for play site as well.
Search "Mineral deed" "MD" "Misc" etc. depending upon which county you search
Deed stamps are calculated at $1.50 per $1000 of transaction.
$21 deed stamp = 21 ÷ 1.5 = 14 x 1,000 = $14,000 transaction price
look for sales that have deed stamps, then look at the deed to see if it discloses the net mineral acres. Often deeds will have a generic quarter section description, but may state somewhere in the deed the actual net mineral acreage conveyed.
Deeds and OGL often report the correct net mineral acres. Those deeds are in the courthouse and can be searched on line via a pay for play site as well.
Search "Mineral deed" "MD" "Misc" etc. depending upon which county you search
Deed stamps are calculated at $1.50 per $1000 of transaction.
$21 deed stamp = 21 ÷ 1.5 = 14 x 1,000 = $14,000 transaction price
look for sales that have deed stamps, then look at the deed to see if it discloses the net mineral acres. Often deeds will have a generic quarter section description, but may state somewhere in the deed the actual net mineral acreage conveyed.
1107-annotateddeedLarge.jpg (167 KB)