$15,000 per acre

was told today buy a friend of mine that someone he knows is selling 40 acres of mineral rights in Harrison county (clendening lake area) for 15000 an acre for an old 12,5% lease. anyone heard offers like this?

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Permalink Reply by Susan A Tippel on April 9, 2014 at 1:21pm

Ha, a lot of us are getting old and losing hope! But cheer up! When they get more pipelines in, things should move faster.

Permalink Reply by Chester Field on April 9, 2014 at 9:07pm

Thanks for the words of hope maybe I'll buy you a beer someday if it comes to pass. And it will be an import!!LOL

Permalink Reply by Susan A Tippel on April 10, 2014 at 7:45am

Marietta Brewery!  I'll buy you a whole pitcher if "something comes to pass."

Permalink Reply by Chester Field on May 3, 2014 at 12:59am

Thats a date LOL!!

Permalink Reply by Brian Delphia on April 9, 2014 at 1:18pm
I have 40 Acres of minerals in Harrison.Right next to the EClark/Chevron pad. I have been marketing it to an extent but no offers around 15k. Just under 10K from brokers and a little less then that from actual investors. 10K and it would be sold!!! 12.5% gross lease.Waiting for production reports to come out and I am assumin they will be good and price should go up. Anyone in Harrison shoud not sell for under 10k, my oppinion
Permalink Reply by Jacob Fewx on April 10, 2014 at 1:00pm
I enjoy reading all of these post but what I never see is anyone talking about the other options of selling. What we fear is we sell our rights for to little making only 5-8k an acre and then see a well get put in and see it produce 50k an acre and wish we had just held onto the rights and wait for.a well and make millions. Consider these options: sell of only a percentage of your rights so you get some money now and then some from a well, limit the stratus the rights are going to (just the Marcella or trenton) since who knows what other stratus will produce in the next 50 years, sell the rights but limit the profit the buyer can make...such as no more than a 400% ( sell for 5k an acre but any profits beyond 20 an acre goes to you). What some of these investors are hoping for is some stupid hick to see $ and sell off and then make a 2000% return. Paying 1 million and getting a 20 million dollar well. In the stock market a 20% return is exceptional, so why would they think it's okay to make a 400% return on use. So put a clause in that caps the return in the event that you end up with the mother of all wells on your place.
Permalink Reply by Mark Mijavec on April 10, 2014 at 5:54pm

I see someone with a 49% tax rate statement what is that about?

Permalink Reply by H.W. Plainview on April 10, 2014 at 6:14pm

Mark,

Taxpayers in the highest federal tax bracket of 39.6% potentially face a combined 43.4% (39.6% + 3.8%) marginal tax rate on their income.

The 3.8% is the new "net investment tax" that applies to high-income individuals (I believe that for married couples, it kicks in above $250,000.)

Add in 5.92% for Ohio and you are looking at 49.32%.

Permalink Reply by The Rooster on April 10, 2014 at 7:47pm

Jacob, are any mineral buyers  really going to go for stipulations like that? im doubtful.

Permalink Reply by evan on April 10, 2014 at 8:01pm
Your right buckeye. No one would ever go for that unless they drastically reduced what they paid to the landowner
Permalink Reply by H.W. Plainview on April 10, 2014 at 8:12pm

the buyers would definitely be interested in the first two options, but a "limited profit" clause would never work.

Permalink Reply by scott peterson on April 10, 2014 at 8:35pm

Its possible but will for sure will lessen the offer amounts. Rick on here sold his down to but not including the Black River/Trenton so it can be negotiated as such but the price will certainly reflect it.

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