How much are the Royalties actually worth? Should we sell our mineral rights?

I just wanted other people's opinions on this.  Should we sell our mineral rights outright or try to lease instead?  Someone quoted my husband a number of $17,000 per acre for royalties over the course of 20 years with most paid in the first few years.  Is this a realistic number?  I know it varies on the productivity of the well but 2 of the most productive wells in our area are within 5 miles of our property.  Is it actually worth holding out or should we sell our mineral rights outright?  Another person told me they know someone who only makes about $30 per acre from his mineral rights. 

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Permalink Reply by gary SWF on July 22, 2013 at 12:59pm

Where are you located?...Twp, County, State???

Permalink Reply by tillacat on July 22, 2013 at 2:18pm

Belmont County Ohio in Goshen Township

Permalink Reply by gary SWF on July 22, 2013 at 1:48pm

Jon, I assume  you are saying $2500/acre???? is that per month? ...per year?

Permalink Reply by tillacat on July 24, 2013 at 3:33am

Is that what they bring in and then we would get 20% of that or is that our take?

 

Permalink Reply by gary SWF on July 24, 2013 at 5:23am

If your royalities were 20%....yes, to be split between all drilling unit acres. So if you had 40 acres of a 160 acres drilling unit you would get 25%(40/160) of the total  royality paid out, or $2500/Acres owned......$2500x 40 acres per month($100,000/month).........good luck, that is a very, very good well quoted above.... I would not plan on this number, but it is possible...........

Permalink Reply by tillacat on July 25, 2013 at 1:16pm

We are about 5 miles from Egypt Valley so hopefully... Thank you for your input :)

 

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