thank you for this info! I will add it to my list!!
And you said you got an offer of $850 but the lease doesn’t expire until November. I have to assume it’s a top lease then. Was the 1500 three years ago the same royalty and term?
Cole,
Sounds like a wonderful idea. I have minerals in TX and OK. I have several thousand acres not lease at this time. Some of my neighbors are giving their minerals away or leasing real cheap and that hurt my change of getting a good lease. I am always glad when NATO send the reports on leasing.
Great idea. Upkeep would be time consuming But, oil/gas companies don’t offer values So folks who need the info if they are looking to sell or for Estate planning…having comparable info would be useful You could gather contact info of independent landmen willing to help w/ title work etc
That would be very helpful. My family has minerals in Colorado- Morgan, Logan and Weld counties.
Yeah that's what I am going to try to do. You right, it will be very time consuming which is why I wanted to see how many people would be interested. If I can get enough people pitching in and sending their own knowledge, it may be worth it. If I only get a few, it wouldn't be worth the time because it wouldn't be wide spread enough. Instead, I am afraid it would cause more harm then good because if theres nothing in someones area on my list, they would try to compare to the closest area. Which unfortunately, is not accurate. Something one township away could be worth WAY more or Way less and the last thing I would want to do is give bad info.
Same here! Hoping Morgan and Logan will heat up some day like weld ha
Would love information on Pecos County
NATO?
Sorry, I can't type anymore.
It's NARO, National Association of Royalty Owners. Very good information and some good meeting. At the conference a person can really learn a lot if they are new to oil business. It cost about $150 per year.
A great idea! Although I don't have much useful information to share, I would appreciate seeing anything about Reeves County, Texas.
It's a great idea !
Just teasing you Virginia. If you own in Oklahoma I'm sure you know my friend Rick Howell.
Great idea!
A suggestion I have would be to separate it out in categories-
Offers with dates-these usually increase over time-not really indicative of actual value
Actual sales- lots can be gleaned from okcounty records- don't use names, just sec-township and range. You can sometimes tell the purchase price by the document stamp amounts.
Actual FMV determined by an engineer-lots of these have been done for estates. You do have to know the assumed prices and discount rates. These would be the most accurate as to actual value determined by a licensed engineer at a certain point in time. These are usually on a well or field basis. Again, just on a well basis. If you have the potential for future wells on your property, you need to consider them in your valuation for sale. The buyers only buy on about a one or two well basis. They know the future value and hope the seller doesn't.
EUR-Estimated ultimate recovery by zone by spacing (in OK). These can be gleaned from Increased Density hearing exhibits on the OCC website. I wouldn't say that they were perfect, but they are indicative. The ones from protested hearings are probably better than non-protested hearings.
Note from my engineer: "Fair Market Value concerning the producing properties was determined by taking 75% of the discounted cash flow using a 10% discount rate. [He] considers fair market value to be the amount a willing buyer will pay a willing seller, with the properties or interest being for sale for a reasonable period of time, neither the buyer nor the seller being under a compulsion to guy or to sell, both being competent and having reasonable knowledge of the facts." Pretty much industry standard.
The seller has a difficult time getting as knowledgeable as the buyer.
Cole, my only concern, and it may not matter to you or anyone else, is that people will be reticent about posting information with actual numbers and, instead, just request to private message each other. To me, that defeats what I'm hoping your site would accomplish, a place for mineral owners to easily find info in their area for recent sales and leases. A place where it's posted for all to see and debate, not simply a meeting place for buyers/leasers to seek potential new clients. Just my two cents. Linton
Code,
Have a question? How are we going to get around the confidential clause. I have signed several leases with this in them. Therefore, I can not disclose what bonus I got as I know I got more than several of my neighbors.
Also, I have gotten a nice report for NARO in the pass on what leases bonus have been in the state. Then I get a sales report from the local auctioneer. It list what the mineral sold for in the area. So, I think this information is out there, a person just needs to look for it.
Virginia, I had that same experience and thought. What if one said an approximation and did not mention buyer's name? At least people could still get an idea of what ballpark prices are.
Bonus amounts are different than mineral rights sales.
Bonus amounts pertain to the "sale" of your products, not your actual mineral rights.
Mineral rights sales are the sale of all your rights, rocks, products, executive rights, etc. Title changes hands.
The pooling reports, NARO reports and state auction lease sales are for the products only. There may be a different auction site for mineral rights sales. Would love to know the website. I have the lease auction site.
I don't want to rain on anyone's parade but my experience (which is limited to our own family minerals) over the year's is that it is next to impossible to get actual owners/sellers to say what they are actually being offered or what they are selling for and, of course, the buyers want to keep things as quiet as possible or the info may inflate what they have to pay for mineral rights. On top of that the market fluctuates daily for many reasons. Of course there are historic records that can give you the price of oil but not of what people have sold their mineral rights for. Of course a database like this would be extremely helpful to those of us with mineral rights I think it will be an huge task to actually get information and make it possible.
John, that's what I have noticed, too. Even if there is no confidentiality agreement in place, people don't want to give it up. It's too bad. It sure would help other mineral owners who don't have the funds to hire attorneys and landmen who just need a ballpark estimate to help them make a decision. I understand there are a variety of reasons people don't want to divulge their numbers. They may not want other family members to know, or feel at risk for that info to be floating around out there. But that info sure would help others.... Linton