I’ve got an offer of about $4k/NRA for acreage in Sec 8 Blk C8 and the 2 sections on the north of it. Does anyone know of buyers offering more in this area? I’d like to sell but think I should be able to get stronger offers.
Is this an offer to lease or buy? You are about 10 miles to my SW. I am in C-18, Sec 4.
this is an offer to buy
I had an offer to buy BLK C-8, SEC. 26 recently from Cresta Royalty Partners for 14k.
Would you be able to get me the contact information for who reached out to you?
Linton, is that $14K per Net Mineral Acre or $14K per Net Royalty Acre?
What’s the difference between NMA and NRA?
There are 8 Royalty Acres for every 1 Mineral Acre. It is somehow based on the old 1/6th royalty leases. They adjust your total gross Royalty Acres by the Royalty in any lease presently effecting the property and also by any Non-Participating Royalties severed in prior title to determine your NET Royalty Acres. That is the number they frequently use in their offers rather than your Net Mineral Acres.
C8 Sec 26 is going to be worth a good bit more than Sec 8. IMO, fwiw.
I would guess you could get more than $4k/NRA for Sec 8 but that doesn’t seem outright insulting.
My understanding is that the net royalty acre is based off of the idea that 1 net mineral acre leased at “the usual” 1/8 royalty (which is no longer usual) equals 1 net royalty acre. So 1 net mineral acre leased at a 1/4 royalty would be 2 net royalty acres.
That seems right to me as well. I’m not a bit offended by it and am starting to see some more competitive rates come in but not super high like the 20-30k/nra in some areas of the Delaware Basin
“My understanding is that the net royalty acre is based off of the idea that 1 net mineral acre leased at “the usual” 1/8 royalty (which is no longer usual) equals 1 net royalty acre. So 1 net mineral acre leased at a 1/4 royalty would be 2 net royalty acres.”
You got it.
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