What is the going price on selling a percenage of your mineral rights?

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Hi Cynthia, May i ask what state and county you are speaking of? this would have some affect on prices.

First off lets be certain were speaking the same language, ok? Are you truly speaking of a sale vs. an Oil & Gas LEASE to allow a production company(driller) to explore for paying quantity of reserves of which you should expect an advance payment (Bonus Money) and a percentage of gross production( Royalty). I am not trying to talk down to you please understand, but we get many newbies who may not have a good base of information to begin working from so i must ask, ok?

If you are certain you are interested in selling a percentage of your mineral rights, know that that is a permanent transaction, it survives as a separation from the surface property virtually forever.

Do not sell yourself short, ok, if that is what you wish to do please take as much time as you possibly can to get educated on what your estimated reserves would be if the gas, oil, other liquids, and any other disolved minerals in suspension might be valued at if present under your property and to the center of the earth in theory.

There are geologists out there that can help you with this but they will want payed for anything more than i give you here, which is free advice, and you know what they say about that right?

Beware of sharks smelling blood in the water. there are some that would present you with a map (maybe the same one you can find online for free yourself), and give you a technical song and dance, but regardless nobody knows for certain until a drill bit penetrates a known formation and hits paydirt, its all guesswork. You may sell millions for pennies on the dollar, if you are not careful.

I will just leave you with this caution again, take as much time as your situation will permit, get educated on the subject whether its a sale or lease you seek, there are many here that can help, read peoples back dated posts on this site by clicking on their name, go to their page on here to get a feel for friend or foe, hell even google their name if you want, before putting much weight in their words. And Lastly please for your sake, get an attorney that can demonstrate knowledge of oil and gas law, to read over and comment on anything before you sign. $200-300 for an hour of their time can be invaluable. best of luck, Jim

Hi JIm,I live in Greene Co,Pa. I have already leased my land.But lately,it has crossed my mind,why sit and wait to see if&when any production will happen,I might as well sell half my minerals & enjoy now.Keep other half for future pay. 3 years ago I was offered 300,000.00 for all mineral rights,just recieved an offer of 2,750.00 the other day. I will say I do not know enough about these minerals,but I sure dont understand how the price could drop that much. So that's the story,please feel free to tell me what you can.Thanks Cynthia  

Hi Cynthia, OK then please forget my long winded previous post, i just really try to be the cautionary voice of patience and education here, especially to Newbies, not that you are one.

Yea as i sit here and wait for my fearless leader to negotiate a deal on my behalf while keeping me and 1,400 other, give or take, landowners completely in the dark, i have the same thought of selling a percentage of my O&G and mineral rights away, but then the voice of reason smacks me back into reality.

Without having a better picture of actual reserves that could be reaped from drilling under your land, both gross estimated reserves as well as net recoverable resources, how could you know if the deal you make is equitable on your behalf. For a broker to just toss out a number he is really just trying to figure out what is the least amount you would bite on, then he would try to horsetrade you out of your future. No deal here!

 Jim, I thank you for your response,I guess my question is What would the right price be per ac. I being half way to 100 yrs.and people my age & younger are dying all around me,just made me stop and think,why am I waiting... This does not mean that I would sell for just any price,I have a few wise friends,that know a lot more than I do.They would not let me do something so stupid as to sell any of it,if it wasn't the right price.I don't want to get into personal things,I'm just done waiting...Thanks again,Cynthia

Half way to a hundred? I am 59 and I will die when I die be tonight be it 59 years from now. I have not been offered lease money as of yet but it is coming this way. I am living without it and I sure aint rich! Sure its nice to sit back with a nice chunk of change. Will it change you, i would suggest no cruise ships! But 50s isn't a foot in the grave its feet above a grave.

as for your dilema I have thought that myself and pondered and pondered

I have struggled personally and financially early in my life but survived. And made me realize what does not kill you makes you stronger.

I enjoy a good steak but fried bologna is a favorite as well. My garden brings me happiness and a bounty- I can buy spaghetti sauce cheaper and faster than I can make it, our homemade is  nowwhere better according to my family. A farm shot venison roast with our garlic,onions yellow beans and beets with a acorn squash desert, I can not put a price on.

my happiest times have been with my family in good and bad. I would like to leave the legacy of my royaltys/mineral rights to my family.

my fortunes never brought me happiness my family has.


good luck with your struggles

what a great question to post and some good advice from James!

it really depends on the price of NG and how much your area will produce at the well.   that is why there are those people who study such ....

yet if you use a royalty calculator such as this one (found on the main page of our website forum here)


you might get an idea of what your mineral rights worth might be....but you need to know the other figures to key in...and let us say it would be wise to do such when the price of NG is much higher if you plan on doing such.   I wonder what NG was selling for when they offered you 300,000.


I had a company from Texas offer $1000 per acre for a limited term royalty conveyance. We have 100 acres in Adams TWP in Guernsey County Ohio. I figure they must know something to offer that kind of money. We told them we were not interested.


 I wouldn't be interested myself when if you end up with a well producing 1000 bbl/day on a 640 acre drilling unit with say 70 acres in that unit with say $100 a bbl, at say 17% royalty could get you  $678,671.88 THE FIRST YEAR!

Hi Billy...i am not so smart about all of this..

what does 1000 bbl/day equal in the royalty caluculator?  what does that equal in millions of cubic feet per day? and we are talking about NG not oil , right?



thank you if you would help with this..

Hi VG... I am no expert on this, but from what I have seen so far, when you see someone reference bbl/day they are talking oil or NGL's (Nat Gas Liquids).  If they are strictly talking NG, they will generally use the measure of MCF, in my mind they are two separate measures...

The 1000 bbl (barrels) per day for oil production.  (This was just a amount I threw into the equation) I did not calculate a royalty for the gas royalty. 

In Ohio though it could be interesting as the Utica will be a Oil royalty, a gas royalty QUESTION HERE will wet gas liquids be a separate category  for a royalty payment?  Nelson below answers the gas MCF that is 1000 cublic feet of gas as used in the term 1MBF  a 1000 board feet in lumber.  He also hit on the NGL s also. 

The only question that is dumb in this website is the question no one asks, we all ask questions in here we are learning. DISCLAIMER we are not perfect! lol


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