How can we find the fair market value of minerals in Grady county, Section 9, Township 7 North Range 7 West?
A mineral appraiser can help you with getting a good estimate of the ultimate engineering value. The Directories tab above has a listing. Pecan Tree does Oklahoma.
The ultimate value is an estimate at the full life of the well done by professional engineers. That full life can range from a few years to a hundred years. The estimates have risk of pricing and a discounted value for the time value of money over the range of the estimate. Upside is that more wells are drilled.
A “fair market value” is a bit more nebulous. Buyers usually based their offers on a three-five year range. Some buyers only pay for wells that are producing right now. Other buyers make give an uptick for wells that are about to be drilled (more rare). They intend to make a profit. Note the time difference-years versus decades. Likely to be a much smaller payment to the mineral owner. Certain areas have more value than others. The more the engineers and geologists know about the area, the better their predictions.
Similarly, my attorney used to say that a fair price is a “what a willing and informed buyer under no compulsion to buy and a willing and informed seller under no compulsion to sell agree to”. Unfortunately, the seller is rarely as informed as the buyer.
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They are fairly expensive, I understand. Just wondered if there’s another source.
Fair market value is whatever the offers you are getting. Theres no such thing as fair market value, its whatever the companies will pay you at the time since you are looking to sell. A mineral appraiser is a waste of time
Thanks!
Is there any new activity planned for section 9, 7 north, 7 west?
Not at the moment, but it would not surprise me if there isn’t some coming in the future. There are OCC cases surrounding it Camino has the current well for 9 and they have a rig in section 4 just to the north drilling infill wells.
Thank you!
Has anyone received offers recently for Section 9, 7 North, 7 West?
You can get a rough number yourself for free. Add up twelve months of royalty from Section 9 and multiply by three to five. That is what most buyers pay for today’s production, which is what Bob means. Anything offered above that is for the infill wells Martha mentioned Camino drilling in Section 4, and that upside is what an appraiser prices with engineering. So the question is which number you want: what a buyer pays now, or what the minerals earn over their life.
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And dont forget to mention to factor in the price of oil and gas paired with completion dates once the wells come online