My parents own mineral rights in Section 15/Block 25/A-25 and I am trying to determine the value of this property and or any future plans for drilling. Thank you in advance for any information.
Value for leasing, selling or simply for an estate estimate? There is some drilling activity two miles to the west but even that is fringe development, meaning it’s pretty far outside the choicest area for development.
Mostly for leasing and Estate Value. Trying to find out how many nma they own. Trying to navigate the oil and gas sector coming from a very different professional background.
I saw a comment somewhere else on the forum where you mentioned your parents leased it for $1 an acre several years ago. While that was a pretty low bonus, it reflected the risk associated with leasing so far outside the fairway, back then, that was WAY outside the fairway. While the bonus per acre is important, don’t get so worked up over that that you sign a 1/8th, 3/16th or 1/5th lease. Make sure it’s a 1/4 lease. As far as a valuation, I’d bet you could sell them for $3k an acre but it would need to be the right buyer, otherwise you won’t get much more than $1,000 an acre. Keep in mind, the advice is worth what you’re paying for it, maybe less. I haven’t dealt with a whole lot of acreage that far to the East in Howard County.