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Marcus has been a very positive contributor to this site since it's inception. I have no idea of his land/mineral ownership status and nor do I care. He has offered up lots of very well thoughtout information to many that have little or no knowledge whatsoever about the oil and gas industry. He obviously is involved in the business. If you follow his comments, you too, will probably learn something momoney.
At $7K per acre there was no news out about the Leesville Cryogenic plant, that meant I was dealing with a potential someday scenario. As you know this works when the buyer and seller (me) had to both agree on a fee based on each other's risk tolerance for X return over the long haul. I was willing to sell a portion of my acres in the short term and mitigate some of the risk to hold long term.
The news about Leesville changed my risk/reward scenario. My logistics and time frame had likely been improved in my favor so the price was going up in my mind. Doing some basic math reveals a potential for an investor to double his investment in the right location in less than 10 years, and with significant potential for exponential growth above that and very long residuals well beyond that. I would still consider an offer greater than $8K and would sign today at $14K.
Of course this is based on what I know today. Does anyone know the sales price of the royalty interest being sold by the city of Carrollton for buying a fire truck? That public knowledge will go a long way toward a stable baseline of value.
The village of Carrollton is considering selling 25 percent of its future royalties from the Utica shale in order to buy a new firetruck.
The company has a possible deal with Gateway Royalty. That company will pay Carrollton $550,000 for its 20 percent royalty on 110 acres leased to Rex Energy.
Carrollton has leased 443 acres to Rex Energy.
http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/carrol...
I am out of Denver--check into DML Energy--they are a small firm, but worth checking into:
303-304-6328
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