106 to 160 acres Sec 3 Non 36 T 1S either a 1/3 or 2/3 share What is the going rate 25% 3 year lease restore surface to original integrity throw in Paugh clause
I would expect that you could do very well!!!
What have you been offered? Make sure cost free royalty. Will thy commit to drill?
i hav not looked up your tracts but my martin county production generates many offers at very high multiples to cash flow.
8500 to 10000 per acre supposedly commit to drill
Correct2 N/E 4
N/E
Caroline, I get unsolicited offers almost daily, certainly weekly for a NPRI. The offer today to purchase my interest equates to $8,000 per net mineral acre.
Make sure you have someone knowledgeable review your lease. I have recently heard of people who thought they were leasing but were actually selling...
Good luck.
What is the difference between an offer for net royalty acres vs. net mineral acres? Based on the assumption that the net royalty acre is being equated at a 1/8th royalty. Thank y'all
Caroline, Did you end up leasing your minerals?
If the interest is leased at 1/8th, then the owner owns 1NRA for every NMA. The term royalty acre was created at a time when the standard lease was a 1/8th lease. But now stand leases are much different usually 1/5 or 1/4.
To figure out the conversion for a lease different that 1/8th you take the current royalty on the lease that is holding the interest and divide it by .125 (1/8th) and that will give you the conversion rate.
For example, for a 1/5 lease you would do .20(1/5th)/.125(1/8th)=1.6 So to find the Net Royalty acres you take the Net Mineral acres you already own and times that amount by 1.6. If you know the Net Royalty acres already and want to figure out the Net Mineral Acres you divide the NRA by 1.6 to find the NMA. Hope this all made sense.
Best,
Cam
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