Does anyone have any information on what mineral rights would sale for in weld county?
Thanks for the help.
Herman, it's location dependant, how near to production?
The amount of acreage in question can make a difference.
Is the property leased?
The buyer could not participate in any wells if the acres are leased unless the lease expires and this would lower the value of your acres. I consider selling leased acres to be bad strategy, but sometimes you have to do what you have to do.
If the property is leased at what royalty, how long does the lease have to run and was the lease negotiated by a professional with beneficial clauses?
Probably a load of other considerations, but start with the location/legal description because nobody is going to be able to give you even a ballpark without that. I hope this helps.
Mr. Kennedy - Thanks for the reply. I don't understand why a buyer of a mineral interest in a property that is leased would not participate in any wells that are already producting on the property. Please explain - Thanks.
Herman, because when you leased, you conveyed the right to participate in any wells to the lessee so you couldn't participate yourself and if you can no longer participate, you can't sell that right to the buyer, in essence, you can't sell the same right twice.
Perhaps you are thinking of a lessor being a participant in a well for the royalty interest he receives. That is not actually a participant. A participant pays for part of the well and receives 100% of the proceeds for their proportionate share less cost of production, marketing costs, taxes and the lessors royalty. The right to participate in the drilling of the well is far more valuable (possibly $60 per barrel after costs, rather than $15) to some than a royalty interest, especially a royalty interest from a lease negotiated, or not even negotiated by the average mineral owner. I hope this clears things up.
Mr. Kennedy - Thank you very much for your explanation. I think i have got my terminology wrong. A buyer of a mineral interest in a property that is leased and has producing wells is entitled to his portion of the income from the mineral owners royalty interest as stated in the original lease but is not entitled to be a participant(Working Interest) in the well. Is this correct?
Do you know you are violating the terms of service with these solicitations? If they were allowed these forums would be nothing but solicitations, looking to pick the low hanging fruit.
James H. Zeiders said:
If you would ever be interested in selling all or part of your minerals please give me a call. (405) 388-1715 or email james_zeiders@sbcglobal.net