I have royalties from 13.3 acres in Dunn County, ND and want to sell. How can I know a ballpark figure of what my interests are worth? I currently have 5 producing wells that I get about $1000 per month for.
One source told me that I should expect to get 45 to 60 months, but another said I should expect to get 120 months, and yet another said I should expect to get 24 to 36 months! How can I know who is right (being truthful!). Is there any place I can view recent purchases of similar interests?
Darlea, it is going to depend on the wells and where the wells are in their life cycle. If the wells are 4 years old and the decline is slight I would figure it one way. If the wells are less than 2 years old and nobody knows where they are going to level off in production, I would figure it a different way. If you were in a really good area, I would also take into consideration the likelyhood off new wells, possibly tapping new formations. Darlea, may I ask what the township range and section of your acres are? And may I also suggest that you list your acres for sale online so you can get as many bids as possible to choose from,
Thank you so much for your input! The description is: Township 146 95West Sec 6 Lot 1, 2, S1/2, NE1/4.
There are five wells One is 3-4 years old, I think, and the other 4 are less than 2 years approximately.
DVIRNAK 14-6H{C01)
DVIRNAK 2-7H
PLETAN 3-18H
DVIRNAK 3-7H
PLETAN 4-18H
My royalty checks have been going down over the past few months
$2600 in 4/2012
$1408 in 8/2012
$1368 in 4/2013
$1226 in 8/2013
$923 in 11/2013
The producer is Continental Resources.
I really appreciate any information.
Darlea, if you are only in section 6, I am only counting 3 wells that actually concern you, the DVIRNAK wells, the others go the wrong direction to be yours, if you are only in section 6.
I think it's a virtual certainty that you will get more wells, the only question is when. Two of your wells are 2 years old and still producing 3400+ and 4500+ barrels of oil respectively per month, and it is respectable if not monster performance.
Your oldest well from 2007 has stabilized above 1,000 barrels a month and I believe that it will stay there for some time and decline only slowly. They did not complete wells as good as they can today back in 2007, the low production of this well is probably due to completion techniques and the oil is having a hard time getting into the wellbore, don't feel bad, I have five like that myself. Gas production from this well is stable or even climbing, that is telling because it's gas that pushes oil while the pump pulls. Long story short, I think that well has a long life ahead of it.
Darlea, you have desirable acres. Sell if you need to but make sure you get several offers first.
Wow! You are awesome, Mr. Kennedy! That is the most information I have been able to get! We don't really want to sell, but are in need of cash, and feel we must. Interestingly, the two Pletan wells are being paid monthly in our statements. One is producing about 4800 and the other is producing about 3200 (if I am reading the correct numbers under "Gross Quantity"). We will indeed get several offers as I am sure the buyers will try to get it as cheap as possible. From what I gather, then, we should hold out for something toward the upper end of those estimates people told us that ranged from 25 to 120 months! Quite a range there! You mentioned posting it on line to get bids, and I wondered if there is a certain place to list it? Thank you very much for this information, and I hope all your wells GUSH for the new year!
Darlea, I made a mistake, sorry. I am rusty from being away for a quarter year and I am fighting a cold. You are in a vertical 2560 spacing with 4 sections stacked in a north south orientation. I count 7 wells in the 2560. Two of the Pletan wells were drilled before the two spacings were joined to make a 2560 acre spacing so you don't get paid for those two early wells because they stay spaced as 1280.
The later two Dvirnak wells were drilled after the two spacings were combined also.
It looks to me like there is room for double the wells you have now, at a conservative estimate but I can't say when they will be drilled.
I understand needing money. If you can satisfy your need by selling less than all the acres you own, I would suggest you do that. Remember the capital gains tax at up to 15% so you may only be getting 85% of the purchase price after tax.
If you have not already you could list your minerals for sale on the home page of Mineral Rights Forum under Listings, scroll down near the bottom of the home page to find listings. I hope this helps.