I own mineral rights that I leased last year, located in Weld County T8N-R60W, Section 20: SW/4. I have received several letters and a phone call requesting to buy my mineral rights. Does anyone have any insight/advice as to how to value my mineral rights? Is this the right time to even consider selling? Also, does anyone have information about a company called Rodeo Energy Partners, Ltd or Meagher Energy Advisors? Or information about drilling activity near my interest?
Thanks.
John
John - the Colorado Oil & Gas Conservation Commission websites shows a Noble Energy well named the Snow Draw #13-20H drilled in 20-8N-60W. There is no reported completion or production on it yet and the symbol on the COGCC GIS map shows the well to be an abandoned location. I'm not sure if this is a temporary status or the well was truly abandoned for some reason such as poor production. There are several Noble abandoned locations in your area. The area is in the general trend of the most activity.
Marcus: I own 6.67 net acres leased for 3 year term, no options. No costs obligations. Royalty rate is 18.75%. I have been contacted by Rodeo stating it's initial offer is $1500/acre. I have not responded. My lease is with Exterra Resources LLC which is believe is a subsidiary of Noble.
Exterra is an independent leasing agent that worked initially with EOG Resources but is probably working with Noble now. Last year there was an assignment filed with the Weld County Clerk & Recorder where EOG assigned a good deal of their leases (maybe all of them) to Noble. Noble is the company most focused on the Niobrara, which is a good thing for you, me and others with our leases held by them. I wouldn't sell for $1,500 per nma, personally, and I'm probably not in quite as good of an area as you. I think $1,500 per nma is consistent with other offers, but I don't know about what they're actually going for. You can drive yourself crazy studying surrounding wells and using those production profiles to calculate the value of your acreage based on discounted future cash flows. However, any of those calculations are nothing but guesses as the number, timing and production of future wells could vary greatly, as could oil and gas prices.