I have been presented with an offer to sell some mineral rights in the 7N-61W area. I’m not sure what the value of them is and what a good offer would be. Can anyone help me with any information on the value of the mineral rights in that area and/or what a good offer would be?
All depends. How many acres? What are they leased at (royalty wise)? Are you in the primary term of your lease? If so, is there an extension and at what price? What Section of 7-61? Are there permits on your section? Etc. We need some more info to be able to give you a good idea of what they may be worth.
Thank you for your response. There is about 120 acres total in Section 8 and 14. I know that Section 8 has a producing well on it, but the royalties have been minimal. Section 14 is leased at an 18.75% royalty. It’s a five-year lease with a five-year option. It was signed back in 2016. There currently are no permits that I know of, but permitting is being done very close to them.
I would expect the offer to be somewhere in the 1000s. I don’t see it being over 2000 with no permits and that long of a lease. The leasing in Township 7-60 and Township 7-61, last I checked, Bison was offering in the $200-$350 per acre range. But that is also only on certain sections, they aren’t even interested in some. I heard those townships are kind of splotchy. Hope this helps.
Thank you Cole! This is definitely very helpful. I thought this was about the value of the mineral rights, so it is nice to have some sort of confirmation of it. I appreciate you taking the time to help me.
I also have minerals in T07N-R61W, Sec 13 - but have received NO offers to sell - Mine is leased to Bison for 3 years @ 20% - I only have 8 Net in a 160