What is 1% of royalty per acre worth BEFORE its developed?

I currently have about 200 acres in Bradford that a portion is set to be drilled this year.  He wants to sell me 1%.  This would take me from 9% to 10%.  We have looked and asked all over the place and no one seems to have a good formula to figure this out.  Can anyone help?

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Permalink Reply by craig on June 23, 2011 at 4:49pm

Finnbear,

I think he is saying that his lease is for 20% royalty, instead of 12 1/2 or whatever,  of which he is the sole owner. 

 

Permalink Reply by CJC on June 23, 2011 at 5:08pm
Yes Craig, you are correct in what he is saying. He has those MR leased at a 1/5 and or 20% royalty, and for that amount of net mineral interest to see 64K in two years is not going to happen at the current average production levels and gas prices in this area. I may be wrong but please correct me!!
Permalink Reply by Brian on June 24, 2011 at 1:39am
This thread is over a year old.  The transaction is probably already complete by now.  The original post stated that the property was going to be drilled in 2010.
Permalink Reply by craig on June 24, 2011 at 1:53am

Was hoping that they would return and post their results!

 

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