selling unleased utica shale acerage. how to determan price?

I am thinking about selling 33.20 acers of land in the utica shale, the maps show it in the wet gas aera. no leases or leans on the land, no buildings. just open land. I have read all the reasons you should not sell, but it dosn't apply to everyone. i have concidered taxes, and age and I think selling is the way to go for me.

the problem I am haveing is arriveing at a price, after reading all the calulations of how to come to a asking price, it is a bit confusing,

can someone stear me to a web site that would tell me what land like this is selling for, or give me a way to calculate a price pr acer?

 

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Permalink Reply by Kenny on June 24, 2012 at 10:01am

Everyone, the fact remains...If the property is under lease then it is worth more to a buyer if you are looking to sell the mineral rights.  If it is receiving royalties then most buyers will buy on a 36-48 month payout.

If it is not covered by an existing oil/gas lease then it is a crap shoot as to whether anyone will buy it and as to how much they will pay for it.

Maps are awesome but unless it is under lease, most buyers don't see much value in the land.

KG

Permalink Reply by Kathleen on June 24, 2012 at 10:29am
Hi Jim,
I did not put this directly under your post so not to disturb the flow of the conversation you and Mick were having so others can read it properly.
When I've talked to landman and some works they told me that the testing was to help guide the fracking. It was said this helps them find the best path to the liquids and gas.
I understand these guys can say just about anything but that made sense to me :0). Maybe that's why they say that, but it's only the shale they can see? Is it how dense, or pourous? Just trying to learn. Thanks.
Permalink Reply by joe pierson on June 25, 2012 at 2:03am

 It depends is there a nearby well (within 5 miles) that is producing? If so you need to look at the production rate. Mineral buyers will severely discount an area that is not currently producing, no matter what the maps say, way too much risk for them.

Permalink Reply by Donald on June 25, 2012 at 3:15am

Joe

no wells within 40 miles, but are starting to lease about 25 to 30 miles north. as one post said, i should wait for production figures in the aera. I think that is good advise. have not made any real decissions yet . their is a couple things I have ruled out. no auction, no local advertising, I would want to advertise where the big money is, and let them do their testing if they want. it looks like the o/g companys will pay big money when they deal with eath other .I have seen 20 30k acr. for some of their deals. just my thoughts, i think proven o/g minerals should be worth 12 to 15k pr. acr. if and when i make a decission I will keep you posted. thanks for the input.

Permalink Reply by joe pierson on June 25, 2012 at 3:47am

Yes the basic decision is do you sell now at a lower price or wait until a nearby well is drilled, the risk is if a nearby well is drilled and comes up unproductive your out of luck.

  

The 20K to 30K deals between companies usually include other stuff besides the leases (infrastructure, drilled wells, gathering pipelines, compressor stations,  transmission pipeline lease, seismic data, ROW's,  agreements to provide drilling rigs etc) hard to figure out what the actual leases were valued at.

Permalink Reply by Jimmy Wilson on June 25, 2012 at 4:25am

 Determan... I went to high school with him !

 

 

Permalink Reply by Mossy Oak Properties on June 30, 2012 at 7:21pm

Feel free to give me a call if you would like some help getting you land sold... Brian @ 614-949-6764 www.landforsaleohio.com

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