I a smalll interest in section 4, SW/4 of the NW/4, township 26, 31 East range. I have received several offers to by my mineral rights. I am wondering what is going on and what the going price is if anyone knows. Thank you very much! Bjd
Hi Barbara,
XTO Energy has permitted a bunch of wells in various parts of Poker Lake Unit, and some of those permits look to be in that section, though there are no rigs there currently. Assuming you leased at 25%, IMO end user buyers will be willing to pay $20k/nra ($40k per mineral acre) in that area. Price may depend somewhat on how much of the 40 acres you own.
Best of luck
Thank you so much. I’m looking at an offer of $30K for my less than 3 acres on a .20 royalty lease. Sounds like a pretty good deal, you think? I’ll probably watch them drill and make billions!
Barbara,
$30k an acre? That is decent. That would equate to $18.75k/NRA at 20% royalty. I would hold out for a little bit more. If its $30k for the whole 3+ acres that’s not decent at all.
Your lease is only recorded in public records as a memo (i.e. no royalty is listed), so if you agree to sell I would be careful about whatever language is in something that you sign as they may be making the offer on an assumed 25% royalty basis yet be able to reduce it proportionally if the royalty is lower. Thus in the end the offer may only be 80% of what you think it is, if that make sense.
Cheers