Can anyone tell me how's the value of mineral rights lease land is determined.
My land is located in Poteet, Texas (Atascosa County). Thank you.
Hey, Frank -
A number of factors come into play in determining the value of a mineral tract of land, just as they come into play when determining the value of a surface tract. How much land and where is it located? Is it presently under lease? Presently under production?
The southern 2/3 or so of Atascosa County, Texas, is in the heart of the shallower, oil side of the Eagle Ford Shale - one of the most productive formations in history, with wells coming in making many hundreds, even thousands of barrels of oil a day.
I'll give you the same advice I've offered to other people with lands in the area: NEVER, EVER, EVER SELL YOUR MINERALS - no matter how outrageous an amount of money someone offers you.
I don't even have to know what the offers are and can tell you that you are being offered pennies, even tenths of pennies or hundredths of pennies on the dollar for what the ultimate value of your minerals may be.
Mineral interests in the Eagle Ford Shale area, once leased and developed, will bring you and your family a steady income for 30+ years.
Even 5 acres of minerals will bring you a surprising amount of monthly income. 500 acres will cause you ulcers from trying to figure out what to do with it all.
DO NOT SELL YOUR MINERALS.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Listen to Mr. Tooke…he is very wise. Also, if you are inquiring about how much you can lease your minerals for, but if your land is in the southern part of atascosa county (the oil window), I would imagine your bonus would be greater than 1000/acre and a 20-25% royalty. I am not that familiar with current lease offers in the eagleford shale but from what I have heard, what I said before is definitely realistic in the oil window.
Charles Emery Tooke III said:
Hey, Frank -
A number of factors come into play in determining the value of a mineral tract of land, just as they come into play when determining the value of a surface tract. How much land and where is it located? Is it presently under lease? Presently under production?
The southern 2/3 or so of Atascosa County, Texas, is in the heart of the shallower, oil side of the Eagle Ford Shale - one of the most productive formations in history, with wells coming in making many hundreds, even thousands of barrels of oil a day.
I'll give you the same advice I've offered to other people with lands in the area: NEVER, EVER, EVER SELL YOUR MINERALS - no matter how outrageous an amount of money someone offers you.
I don't even have to know what the offers are and can tell you that you are being offered pennies, even tenths of pennies or hundredths of pennies on the dollar for what the ultimate value of your minerals may be.
Mineral interests in the Eagle Ford Shale area, once leased and developed, will bring you and your family a steady income for 30+ years.
Even 5 acres of minerals will bring you a surprising amount of monthly income. 500 acres will cause you ulcers from trying to figure out what to do with it all.
DO NOT SELL YOUR MINERALS.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Charles Emery Tooke III said:
Hey, Frank -
A number of factors come into play in determining the value of a mineral tract of land, just as they come into play when determining the value of a surface tract. How much land and where is it located? Is it presently under lease? Presently under production?
The southern 2/3 or so of Atascosa County, Texas, is in the heart of the shallower, oil side of the Eagle Ford Shale - one of the most productive formations in history, with wells coming in making many hundreds, even thousands of barrels of oil a day.
I'll give you the same advice I've offered to other people with lands in the area: NEVER, EVER, EVER SELL YOUR MINERALS - no matter how outrageous an amount of money someone offers you.
I don't even have to know what the offers are and can tell you that you are being offered pennies, even tenths of pennies or hundredths of pennies on the dollar for what the ultimate value of your minerals may be.
Mineral interests in the Eagle Ford Shale area, once leased and developed, will bring you and your family a steady income for 30+ years.
Even 5 acres of minerals will bring you a surprising amount of monthly income. 500 acres will cause you ulcers from trying to figure out what to do with it all.
DO NOT SELL YOUR MINERALS.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
The “bigger fool theory” is employed by both sellers and buyers. The less you know of the current drilling activity on your mineral land the bigger fool you become. Drillers will offer you what they think you will accept in your ignorance. Offer and counter offer is the way price (value) is established.