My family owns a small wellbore only interest in North Dakota. We are interested in selling and would like some help finding the companies that are buying this type of interest. I have called a number of the mineral buying companies in that area, but they do not buy working interest.
Current cash flow is about $750/month.
Any help would be greatly appreciated!
Ben Samuels
Ben,
Another option would be to go through an auction site like EnergyNet.com or ogclearinghouse.com. Leasehold interests like yours are put up for auction frequently and this way you can get in front of multiple buyers. In any case, you should perform a rough valuation so that you understand what this interest is worth. If you go through an auction site, you can then use this information to set a reserve price (if bids don't go above this price you aren't obligated to sell).
There are many ways to value leasehold interests but as a reference point, the rule of thumb for producing royalty interest value is 50-70x average monthly cash flow. If your interest is a working interest (you have to pay your share of Lease Operating Expenses each month), value would be based on net cash flow and would need to consider P&A costs of the well at the end of life so a discounted cash flow analysis would be more appropriate.
I hope this helps,
Matt Sands
Minerals Management