I have been approached to sell royalty rights for the following:
Sec. 14: S2NE Sec. 23: NE, SENW
While I am retired, I have no particular need to sell them. But, as I am completely ignorant of how to value them, I would greatly appreciate any advice that would help me evaluate their value.
Thanks in advance.
Hi Gary: I would start by asking if you are currently receiving any royalty checks relative to your mineral rights? I can see that there are producing wells in both Sec. 14 & 23. Samson seems to be active in the area with several producing wells out of the Sussex formation. I own ORRI to the north of you. The last offer I received was based on an average monthly amount I received times 36 months. I did not sell as there is more drilling to be done in the near future (depending on crude prices). Unless you need the money, I would hang on to them. In the not too distant past, $10,000/acre was not out of the question. That will also vary depending on the outlook on future crude prices. Regards, John
Hi John. Thank you for the very helpful feedback and advice. - Gary