Hello to all. I have been on this site for years. It has been a long time since I've needed some help.
I'm thinking of selling my Mineral Rights. Can anyone give me some advise on how to determine the value of Mineral Rights.
Merry Christmas and Happy New Year to All
Depends on where your mineral rights are located. What kind of leases do your neighbors have? any producing wells close to you? Do you have a lease? What oil&gas driller has most of the leases close to you? What your minerals are "worth" and what you can sell them for may be quite far apart.
Thanks for replying
Mineral Rights Butler County, everyone around is leased, don't know type of lease everyone has, 2 producing wells across the road from me, I have lease, was Rex now PennEnergy.
I have been researching and studying since I posted this. Looks like the figure I had in mind was pretty close to what I have found so far. Hope more replies will come in though. I like to gather as much info as possible before I make a decisions .
I have to look at tax end of his too.
There are people who may be interested in buying your rights who are not associated with the oil&gas industry. investors. They may pay more since they aren't tied up with the producers,just wanting more return from their $ than what they get from banks,or stocks. You just have to find them.
A daunting task, this selling of Mineral Rights. There are many, many people out there who will make you an offer. That is where the trouble starts, as it is very difficult to know where the offer stands in terms of fairness to you. Might I suggest contacting an OGM rights appraiser, as they MAY be (or maybe not) the best source, but at least it is a starting point.
Another consideration might be selling an undivided percentage of your OGM rights....gets you some cash now but keeps you in the game for development, if that works in your situation.
Best of luck to you!
I' m going to flip this around. What if I wanted to buy Mineral Rights? Would the process be the same?
I would assume I would have more leverage as a buyer?
BOP Land Services was leasing for Edgemarc Enegry recently for $2000 and 14%-15% royalties. I’m not sure if you should double this amount since most of the leases are 5 + 5 year leases at $2000 each 5 year term or if the rights are worth more then that selling?
This is in Butler County where they were leasing.
Think about it, if they are offering you $2000 per 5 year term, that is essentially $4000 per acre that you can maybe get without selling. Of course, no guarantee on the second/renewal term. If that is the case, I would want $4000 per acre PLUS another nice chunk on top to sell.
Let me know if you have any luck getting offers for your rights, I talked to both BOP and Edgemarc and I’m not sure if I would rather lease for $2000 or sell the rights for $4000-$5000? My 79 acres is also in Butler county. Thanks.
it seems like if you already got your 2nd term bonus money they give you a lowball offer for you minerals they want that bonus money and your minerals .
Hey Sarah, we help people sell mineral rights and would be happy to give you our estimation of market value.