Should I take 3200 for mineral rights (purchase) in Jefferson County Ohio?

This does not include surface...really need a quick sell...

Views: 829

▶ Reply to This

Replies to This Discussion

Permalink Reply by Jim Litwinowicz on August 15, 2013 at 8:49am

What have leases been going for?  Is the land under lease? If so, what are the terms and when does it expire? Or is it HBPd?

3200/acre sounds pretty cheap to me.

Permalink Reply by Chris on August 15, 2013 at 8:55am

Id say you could get a little more, even in the dry gas areas.

Permalink Reply by Christy Lee on August 15, 2013 at 11:00am
No lease on it. It is complicated by the fact that my 6 acres are actually 1/12 interest in 77 acres.
Permalink Reply by Christy Lee on August 15, 2013 at 11:01am
Not leased, don't know what HBP is! :)
Permalink Reply by Aaron Yeager on August 15, 2013 at 8:59am

Christy,

 

I am by NO MEANS an expert in thefield. I have 35 acres that I leased to DPS for 2,000/acre and the latest I know of, Jefferson county was leasing for 5,300/acre. I read an interesting article about a producing well in (I believe) Carroll county and it was producing at approximately 250/acre per month... that's about 3,000 a year in royalties per acre. I know that royalties/gas production slowly diminishes over time but wells produce sometimes for 40 years. I'm no expert, but I would NOT accept 3,200/acre. For the buyer, that's basically paying you for the first year of royalties up front and then collecting the next 39 years of royalties for themself.... that's EXCLUDING a lease bonus if the land is currently unleased. Either way, I wouldn't do it!!!!

Permalink Reply by Christy Lee on August 15, 2013 at 10:58am
I think it may be dry gas, and I only own 6 acres. Get the impression the smallness is an issue, and it is an old deed. Thank you all for your replies, again, everyone on here has been so generous with information.
I was told when I posted before as much as 12000, but it seems to be complicated. I think I'd grab 5000per acre and run now!
Permalink Reply by Jim Litwinowicz on August 15, 2013 at 11:08am

Christy; just sent you a message. Check your inbox

Permalink Reply by Christy Lee on August 15, 2013 at 12:42pm
Your message disappeared! Could you send again.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service