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Permalink Reply by Jack on March 15, 2012 at 12:48pm

I recently read that mineral rights value in some counties is over 4000 an acre. Has anybody else heard anything? This is for selling , not leasing

Permalink Reply by 0i7okn54zwbdo on March 15, 2012 at 2:30pm

I've seen numbers as low as $1,500/acre in the western edge of the oil window and as high as $5,000/acre for the "honey hole" area in Carroll. Because there aren't a glut of buyers yet the price will not be truly determined by market forces. I know in Mahoning MC Minerals was buying for $2,500/acre for a while. NPV is roughly $1,000/acre per point, meaning a landowner with lease stipulating an LOR of 15% can expect $15,000/acre of royalties. That assumes quite a bit though. Mineral rights buying usually comes in at about 1/4 of the projected potential royalty since there is no way for a buyer to know if they'll ever get production to make up that initial price paid.

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