Hi Folks
My wife would like to sell some or all or her mineral rights to land in Williams County, North Dakota, on which there are 18 producing wells. According to the Mineral IQ website, the present value (PV10) of these rights is $127,102.
What is the best way to find a buyer, set a fair price, and negotiate a sale?
You need to say a few words about how much royalties you get and how long the 18 wells has been online + your royalty rate.
A general location should be provided as well. The township, range, section. Who is producing the wells currently?
Sean, to answer the question you asked, you might look in the directories above for mineral buyers. You can also think about putting the minerals in mineral auction such as MCEE or Energynet. If you are handy with the computer, you can always go online in Williams county and determine who is buying minerals in Williams county.
Usually mineral buyers find you. Have you had any interested parties in the last year or 2? Just a heads up so that you arent disappointed, no company is going to come close to PV10 pricing on declining wells, unless there are a couple of permits to drill or increased densities recently filed on your minerals.
Well the rubber meets the road on how good/crappy the forecast is that goes into MineralIQ, but folks would probably buy your PDP for something close to PV10. (i.e. a reasonable declining forecast is discounted back at 10%). Prob closer to PV12 but you never know, somebody may think we are waterflooding the Bakken in the next 20 years.
Not sure how many mineral buyers will find you when you are $100k worth of minerals. They might. But its a bit harder in ND with no tax rolls.
If you lead with : I want to sell my minerals, they are located specifically here…on this site, you may just get somebody to make you an offer.
I have minerals in Mountrail county & I usually get 3-4 offers per years to buy my rights. IMO one should never sell them.