Value of Farm with OGM's
My wife and I would like to know the value of our Property in Potter county PA Oswayo TWP.
We have 89 acres with The OGM's and did not release with PGE in June 2011. There's a three to four bedroom home with pole barn and pond. 90% wooded . We have lived here for 27 years and there is not much drilling activity with-in 10 miles of us except for a neighbor that has oil and gas wells about 1/2 mile away. I don't think the Marcellus is very thick in our area but the Utica could be a differnt story and we are only 3-4 miles from the New York line.
Views: 1739
Replies to This Discussion
-
Permalink Reply by Billy Park Whyde on
-
The Utica play is after the wet gas and oil which is predominate in eastern Ohio, the new frontier you might call it. With NG prices being low I have to believe Pa will be on hold till NG prices increase.
Property is worth what some one will pay for it ! Are you willing to sell it lock stock and barrel then it has a possibility of a high value. If your wanting to retain mineral rights it might hurt the value considerably, will you keep timber rights another consideration.
If I were selling I would ask for what the property is really worth as far as property (house, buildings, tillable acreage, location, schools, road frontage ect. Now here come the tricky part. Of you know you could lease the land for say $3000/acre = $267,000 so a new owner could grab that the next day after selling. Well your not going to give that away are you, I doubt it. But at that point you have speculation for a buyer. You also have a royalty value to consider as speculative.
I think the only way I would sell for value is to have a prospective buyer agree to be under a lease proposal that would allow a lease to take place with you receiving the initial lease money with the new buyer making an assignment of the lease payment to you with a agreed over riding royalty percentage being assigned to you.
It could be done with the buyer getting the mineral rights granting the lease under his viewed desires in a lease while taking into consideration royalties but limiting speculation to a degree.
In this manner the buyer would have a say on the property he is about to buy.
An attorney could more than likely make this happen but in more likely hood the buyer would not need financing. A lot of possibilities.
This is a whole new ball game with a crystal ball to bright to look into.
-
Permalink Reply by Mike Filer on
-
Thank you, I need the crystal ball. My thoughts have been a bird in the hand and let it all go.
Mike
-
Permalink Reply by Billy Park Whyde on
-
Another option if your able to retire look for a warm climate, just lease the property rent the property out through a management company ( Amish like these deals) you retain all the property, harvest a timber crop in the future, get a monthly rent, possible royalty along with $267,000 and a good tax accountant I think you can kick your shoes off and relax.
-
Permalink Reply by Billy Park Whyde on
-
I forgot Mike put me in your will, lol!
-
Permalink Reply by Mike h on
-
You also have to consider what impact a lease with bad conditions might have on what a potential buyer might be willing to pay. I'm dealing with that now. A neighbor died and his land would make a nice addition to our farm. Unfortunately he signed an insanely crappy lease (just as an example - "lessee has the right to use any and all water except for household water"). We will speak with his heirs but I have a feeling that we will not be able to come to an agreement. Because there is a contguous lands clause in the lease we would need to do the purchase through a seperate LLC which has a negative impact on getting the property into CAUV (will have to wait 3 years instead of putting it in right away).
Just a few thoughts.
-
Permalink Reply by Mike Filer on
-
Mike, I have considered the impact of a new lease for a new owner and that's why I did not release with PGE.
Top Content
Latest Activity
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
