Although as I have read through this board, it would be better long-term to lease, due to family issues, I am looking to sell and of course want the highest dollar.
What per acre $ should I target for? Which companies would be best to approach?
NE/4 Section 13 Township 16 N Range 11 W
and
SE/4 Section 24 Township 16 N Range 11 W
On section 13, I have seen unsolicited offers of $3000 per acre. I have received no unsolicited offers on section 24 as of yet.
Thanks for any assistance!
Beth,
If you are interested in selling I can get you a couple of offers, if you want to send me a private message with the amount of acres you have, I can send it out and get some offers.
I can't figure out how to PM .... but it is 40 acres in each section, 80 acres total.
Beth,
If you don't mind sending me an email then [email protected]. If you could, include who the minerals are currently owned by (name of entity) and that should be all I need and I will get you some prices today.
Felix Energy, Cimarex and Continental Resources are the main players so far in that area. Horizontal drilling is moving that direction. 13 had leases earlier and 24 has seen some leasing in 2015. To be honest, you won't get top dollar at this point in the game since the horizontals have not been drilled yet. You might want to consider selling half and keeping half. If you are not leased, you can contact all three companies to see if they will lease your area. Sometimes you can get a higher lease price if it is a multi unit deal. I am seeing 3/16ths and 1/5th leases. Newfield is also in Blaine, so you could try them. I am sure there are land men who watch this site who can help you get some offers.
Thanks! I will look into those companies and see what the offers are ... Do they allow you to sell only 1/2 of a parcel or perhaps sell 13 but hold 24?
You can sell any amount you want.
There has been recent leasing in both sections. If you are not leased yet I would check with the companies doing the leasing (Cimarex Energy mostly) and see what they are offering per acre (to lease) currently. Multiply that amount by 2 or 3 times to arrive at a range you might expect buyers to pay per acre for your unleased interest. If the area had better production the multiple would be higher but it doesn't that I can see.
That said, the BEST (and most accurate) way to determine their value is to offer them for sale yourself to at least a few unaffiliated buyers that seem trustworthy, and who are willing to make you an offer and are actually purchasing unleased minerals in your area (and thus are familiar with the area already). Take the average of the initial offers you receive, and you'll likely have a good indication of a "starting" range. Some buyers will offer you their "top dollar" right off the bat, but many won't, so best to use the initial offers as a guide only, though the true "top dollar" might not be far above that in some cases. The more potential buyers you get offers from, the better "feel" you'll have for their true market value.
Don't contact potential buyers until you are actually ready to sell though, because it takes time (and "time is money") to properly evaluate a mineral property, and most buyers prefer to take that time only with mineral rights that are actually for sale.
If you just want a valuation before deciding to sell there are people out there who will do appraisals for you (for a fee). Note however that there are not many properly qualified mineral rights appraisers out there unfortunately. Many who claim to do "mineral rights appraisals" have no idea what they're doing, and tend to use overly-optimistic "textbook" methods rather than "real-world" methods, usually to the detriment of the mineral owner who paid them. Ask for references before hiring them, and make sure they're not a buyer themselves, because you should be paying for an objective opinion.
I agree with M. Barnes comment in that you may not get top dollar at this point since the new horizontals have not been drilled yet, but on the other hand, they may never be, or may not come in as good as hoped for. In some cases, better to sell before a well is drilled as the optimism is high at that point even if the well eventually disappoints.
Thanks Frederick - that is really great and specific information. I really appreciate it.
Have you tried listing the mineral rights on Energynet.com? It is an auction site that I have used quite a bit to buy minerals and royalties.
Where’s the barn burner Continental well???
I have 30 acres, in Lavalette, i was offered 100 acre some time ago for a oil and gas lease, their is one well on a property next to mine, and the fellow, who my property is next to does not own his mineral rights, so his 120 acres is going to waste as they are not going to let them drill over their as far as i know, my property is one huge fan shape running up to the ridge, so it is more usable and can be much more productive, than the acres it is, I need to set up a good lease, if you can help me this would be great..i also have roads or good access to the land since i had it logged 6 years ago..Larry 304-523-0645
Their is also a large gas well that has been in production for years, just down the road on beach fork road, so this land is viable for sure
Beth, i have sent you a friend request. Please accept it and I can PM you a message about your minerals.