Current rates for Selling mineral rights?

We have acreage in union township and have been approached to sell all or part of our rights for about 7000 dollars an acre. This is quite a bit more than other offers we had received. Can anyone tell me if this is a good offer? Any suggestions for how to proceed would be appreciated.

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Permalink Reply by Philip Brutz on November 23, 2013 at 6:43am

I will try and find it for you when I get home tonight.  I may have shreaded it already.  The offer was for 82 acres with a 20% gross royalty.  So your offer for $7000 an acre at 12.5% net might be in the ballpark.

Permalink Reply by charliet on November 23, 2013 at 8:33am

LL&B Minerals Belmont county Mead township $7000 per acre for 12.5% royalty (HBP) and up to $11,500 per acre for 20% royalty If you are unleased pay up to $14,000 per acre.Just got the letter in the mail on 11-22-13

Permalink Reply by deutchen on November 23, 2013 at 11:44am

the highest I've heard of in Belmont county is $9000/acre for 15% royalty with vision minerals out of Oklahoma. They have a website.

Permalink Reply by bo boboski on November 23, 2013 at 2:19pm

A guy posted on here from Quaker City ,oh.  that he sold his rights to Flatiron for $9300. per acre.  Now is neighbors are being offered $11,000. Holding out for $13,000.

Permalink Reply by David Cain on November 24, 2013 at 7:59am

I am in Guernsey county - Millwood township like Philip Brutz. Two weeks ago I got 2 offers in the mail for $10,500 per acre for 20% royalty rate.  I also had a guy show up at my door (I live 2 hours north) with an offer of $10,300.  The offers were from LL&B, FlatIron and Scout Energy.  I think interest in Millwood has picked up because they just finished the Rex J. Anderson wells and rumor has it that they just went into production.  I am going to hold out at least a little longer, but those numbers are tempting.

Good Luck.

Permalink Reply by evan on November 24, 2013 at 8:07am

David I'm also in millwood and have been talking to a few companies   very tempting for sure.. Just looking for that push either way to do it or not.. my offers were about the same

Permalink Reply by David Cain on November 24, 2013 at 11:44am

Evan,

I think it was you that had said that you were hoping to make it into the McClain unit.  Did that happen?  If so, I would think that you should get an even better offer for your mineral rights, since there is a little less risk/time involved.  

Have you heard anything about the J. Anderson wells?  I talked to someone and they said that they were "good" but didn't know any specifics.  

Thanks

Permalink Reply by evan on November 24, 2013 at 11:59am

Yeah im in McClain unit.. The only thing I've heard about the Anderson wells is they were having some trouble fracking them I guess because there was so much pressure, which is a good thing I guess.  They are flaring it right now..

Permalink Reply by Mark Allen on November 27, 2013 at 1:06am
Is this the Milleson group that he leased to Rex?
Permalink Reply by HilltopHome on December 2, 2013 at 5:27am

I just read through this 6 page thread, interesting info. I'm curious, when you say "I got 2 offers in the mail for $10,500 per acre for 20% royalty rate." does that mean the buyer is offering to purchase your rights at that acre rate as well as give a 20% royalty on production, OR do you already have a lease signed at 20% royalty and they are willing to pay that amount to assume mineral ownership (and become the new lease "partner" with the driller) and get their payback from the royalties?  I've gotten an offer (I have land in Monroe County, 40 ac, don't live there) and have received an offer for $5,000 per acre at 20% royalty. This is for a 5 yr lease, 5 yr option (not a sale). The offer is through Northwood out of Columbus.  I've gotten several solicitations in the mail as well with offers to purchase the rights,  (no contracts sent, just rough offer kind of stuff) one was from LL&B in fact, others I don't remember.  I've not seen any mention Northwood Energy, anyone out there heard of or dealt with them? I've not signed, but I've gotten a non-surface clause added and I've sent things back asking for other small changes as well. Still waiting for word back from them now.....

Permalink Reply by Philip Brutz on December 2, 2013 at 6:00am

Jason these are offers to buy our mineral rights assuming that we have a 20% royalty.  They would pay less if it was 12.5%.

If you have not signed a lease yet I would read this thread:

Beware of all the gas companies!

Permalink Reply by Brian Delphia on November 25, 2013 at 2:28pm
I have a 12.5% gross(HBP) in Harrison Cty, Freeport and was offered $7500. Not quite enough though. Chevron is gearing up in the area and a permit issued very close. 2.5 acres out of 40 acres total of mine is in that drill unit

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