Buying mineral rights to leased land

I've gotten an offer of 1500.00 per acre. What would be the benefit to the buyer if it is already leased? The royalty is only 300.00 per month and not worth the 135k offer.

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Replies to This Discussion

Permalink Reply by Jack on March 15, 2012 at 7:48pm

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 Marcus Grayson on March 15, 2012 at 9:30pm
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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