Wondering about activity in Pittsburg County. Also if someone could clue me in on the going rate of leases and what exactly “per net mineral” means…
Thanks
Looked at a report and the range of lease bonus per acre back a few months ago went from very little up to $2,500 per acre. Average price of $703 per net mineral acre. Per Mineral Acre is essentially your ownership as a part of the gross acreage. If you own a 1/4 undivided interest in 100 acres (gross), your net acreage is 25 acres. Lease bonus is paid out on a net acre basis.
So can you help me understand this offer… it is for a 50 acre section that we own 1/7 interest in… and they offering to purchase all or a portion of for $5000 per net mineral if leased at 3/16ths Royalty.
What would that mean for our 1/7th part?
Well, it would be best if I could see the offer but just doing the math, 1/7th of 50 * $5,000 would yield ~$35,714. Sometimes those offers can be misleading. Many of these mineral buyers think in terms of ‘net royalty acres’ versus ‘net mineral acres’. My advice is never just jump on the first offer. My deal is getting multiple offers if possible and try to get the price up. Email me at dan.george@pinonenergypartners.com if you’d like to talk about it.
I did email you and thank you for your help!