Offer to buy oil,gas and hydrocarbons for 6,500.00/acre in Center twp,Butler County,Pa

I'm considering selling roughly 30% of my oil/gas rights and have been offered 6,500.00/acre. To accomplish this I would sell the oil/gas rights on 21.412 acres in full(100%) and keep the remaining 50 acre rights for myself. My particular circumstances require me to acquire some funds upfront and even though I know selling some of my rights is a bad idea, I must consider this option. Forgetting all the reasons NOT to sell I would like some input from you knowledgeable Gomarcellus guys and gals that are getting royalties in Butler county if this seems like a fair amount for Center township Butler county Pa.. All thoughts and ideas are welcome but please refrain from any bashing or negative character comments. Any information on contract wording to insure only gas, oil and hydrocarbons are being sold vs all mineral rights would be appreciated also.      Thanks in advance, Bob A. 

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Permalink Reply by Philip Thackray on June 16, 2015 at 12:53pm

Bob,

Excel has several time value of money formulas with expanations of what they are doing.

NPV = Net present value (includes cost of income stream)

PV = Present value of income stream

FV = Future value of income stream

I think that the NPV function only accepts a fixed income stream while the PV can accept different payments in the time periods.

All require an assumed interest rate.

related function are:

IRR = internal rate of return.  This is the interest rate that sets the NPV function to zero.

and the basic mortgage calculation from which the above are derived.

Best of luck with your surgery!

Phil

Permalink Reply by Robert Allingham on June 16, 2015 at 2:05pm

Thank you Philip T., appreciate your help and good luck wishes.

Permalink Reply by Trapper on June 16, 2015 at 3:02pm
Good luck Robert. If you have to sell some minerals to have your surgery,then so be it. You have to take care of yourself so you can someday enjoy the bounty from the mineral rights you have left! God bless and have a speedy recovery!
Permalink Reply by Robert Allingham on June 16, 2015 at 3:38pm

Thanks Trapper. God bless you and your family. Appreciate the support buddy.

Permalink Reply by Nancy LeNau on June 16, 2015 at 10:26pm

Robert,  The Best of luck to you and your Family !   Saying prayers for a Speedy recovery ....   God Bless you ....

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