My father inherited mineral rights in 3 sections in Okfuskee county. Can anyone estimate what the value might be? It has 2 working gas wells on it. This is all very new to us. It is 160 acres.
If you give the sections, townships and ranges, we may be able to guide you in the right direction. The value is related to the currently known producing wells and any potential future wells. Buyers usually do not pay for the future potential.
Are you sure it is 160 acres? If you are going from a lease, the language is usually gross acres and your father may have a subset of that gross. The age of the gas wells is important and the remaining reserves. Activity is not particularly high in Okfuskee at this time.
For some purposes, such as Medicaid eligibility, the minerals are valued at 3 times the most recent year’s royalties. Obviously, this does not account for the possibility of new wells or depletion of current wells.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
If you share the legal description, we can help you determine what he owns and get you in touch with some who can help you with an evaluation.