Mineral Rights Forum

America’s conversation place for mineral owners

In selling 2.5 NMA, subject to an existing 3/16 lease, someone recommended basing the value on net royalty acres. Can anyone explain what that means? 

Views: 734

Reply to This

Replies to This Discussion

Now if you guys could just give us THAT formula, were all be grinning!!  Linton


I usually ask for NPRI burdens that are discovered during the title search to reduce the per acre price by 50%. Buyers usually push back and argue the property is unlikely to be leased again and their is little value in the potential bonuses. 

A simpler formula for calculating your royalty acres is:

1/8 - 1.0 royalty acres per NMA

1/6 - 1.33 royalty acres per NMA

3/16 - 1.5 royalty acres per NMA

1/5 - 1.6 royalty acres per NMA

9/40 (22.5%) - 1.8 royalty acres per NMA

1/4 - 2.0 royalty acres per NMA

Thank you, this has proven to be very helpful to me.

How do you calculate net mineral acres if you don’t have a copy of the lease?

The lease usually doesn’t state NMA, you’ll have to ask the company who owns the lease or have title run by a landman to figure it out.

Thanks but the operator won’t send me the lease and I have already run title. 


© 2018   Created by Kenny DuBose.   Powered by

Badges  |  Report an Issue  |  Terms of Service