Hi,
I was recently offered $100 per acre to lease 2.5 acres in the section of 1N 63W. Is this considered a reasonable offer? Or should I have a core sample completed to find out the actual value for my area? Has anyone in Weld County, CO researched the cost of such procedure?
I am new to this arena and would appreciate any info.
Thanks,
Jeff
More so than what your offered per acre, I would be concerned about % royalty you would receive. Shoot for 20%.
Our first ground we got only 12.5%, last ground we leased out we got 20%. One month of royalty is more than what we got for the lease payment.
Gary
Hey Jeff,Not real sure,if this is good or not,on your amount of acrage. I talked with a land man on the Phone and I just came right out and asked him what his top was, and he said " I can go to $ 350 per acre". and I am thinking he was with, chessapeake, cant really remember for sure. but there are so many of them in here you cant swing a dead cat without, hitting one of them, As far as core that would more than likely cost you more than, what you would get. Good luck with your, venture, My thought is take what you can get and be happy with your,agreed price, because there will always be someone else that,will come up with a better deal. kind of like selling wheat. Cal Hopper
JEFF -
You may want to consult the Colorado Oil and Gas Commission data base.
A. Select Weld County
B. Select year 2010 to 2011
C. Place 1N and 63W in the correct boxes
Your results will show 34 wells for that Township and their production levels.
Read Carolyn Mills thread (it may take a couple days as you play with the databases and maps) In This Forum - and you will learn how to use the Weld County Recorder's office to discover adjacent owners - surface and mineral.
http://www.mineralrightsforum.com/forum/topics/weld-county-colorado-offers
May your family live long and prosper.
Sincerely,
Abdul
Jeff....you should receive about $500 per net mineral acre as a lease bonus. Expect 3 to 5 years paid up lease and about 1/8 royalty payment (after costs) if gas or oil is produced.
The drilling of a "core sample" would involve a hole of 11,500 feet deep and a mile sideways underground. The cost would exceed one million dollars. For the same cost, you could drill a simple well......good luck.....Thomas
Thomas -
How would you estimate the lease bonus on a short primary term. For example, on your numbers $500/net min acr for 3-5 years...what would be an equivalent for say a 2 year lease?
Dan M
Thomas Mullins said:
Jeff....you should receive about $500 per net mineral acre as a lease bonus. Expect 3 to 5 years paid up lease and about 1/8 royalty payment (after costs) if gas or oil is produced.
The drilling of a "core sample" would involve a hole of 11,500 feet deep and a mile sideways underground. The cost would exceed one million dollars. For the same cost, you could drill a simple well......good luck.....Thomas
Regina,
Have you seen this article from August 2011, stating that Weld County set auction record.
http://www.bizjournals.com/denver/news/2011/08/30/weld-county-parcel-sets-record.html
You can go here and learn more about how CO handles state land auctions.
http://trustlands.state.co.us/Sections/Minerals/Pages/Auctions.aspx
Note: I am not from CO and do not have any experience in CO, however, hopefully the links I have shared will be helpful.
Wilson
Hi, went to the link. Thank you. It appears the state leases their minerals to generate income. The leases my family signed are going on 3 years old. In the article it says a drilling permit is good for two years. I will now research to see if a permit was issued for our parcels. A relative found that our 320 acres was pooled with another 320 for drilling purposes. More research.