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.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]